Predix pulls IPO, blames market conditions

New York, Oct. 26 - Predix Pharmaceuticals Holdings, Inc. said it has withdrawn plans for an initial public offering of common stock.

The Lexington, Mass., pharmaceutical company blamed "unfavorable market conditions" for the decision in an RW filing with the Securities and Exchange Commission.

It added that it may carry out a subsequent private offering under Rule 155(c) of the Securities Act.

"While we have decided to withdraw our plans for an IPO at this time, we are continuing to advance the clinical development programs for our three lead product candidates," said Michael G. Kauffman, president and chief executive officer of Predix, in a news release.

"We are well underway with enrollment for our first pivotal phase III clinical trial of PRX-00023 in general anxiety disorder, and we expect to initiate a phase Ib proof of concept study for PRX-08066 in pulmonary arterial hypertension later this year and a phase II study of PRX-03140 in Alzheimer's disease in the first half of next year."

Last week the IPO had been put on hold with timing "to be determined."

Predix had hoped to sell 5 million shares at a proposed price of $10.00 to $12.00 per share.

Proceeds would have been used to fund continued clinical trials and for general corporate purposes.

The bookrunner was UBS Investment Bank with joint lead manager Deutsche Bank Securities and co-managers CIBC World Markets and ThinkEquity Partners LLC.

Predix, formerly Bio Information Technologies Ltd., has its roots in Israel and is focused on novel, highly selective, small-molecule drugs that target G-protein coupled receptors and ion channels.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.