12:00 AM
 | 
Aug 03, 2009
 |  BioCentury  |  Finance

Ebb & Flow

Cumberland Pharmaceuticals Inc. is hoping to capitalize on both the market upswing and the June FDA approval of its Caldolor IV ibuprofen to get an IPO out the door.

The last substantial IPO was almost a year and a half ago, when Italian oncology play MolMed S.p.A. (Milan:MLM) raised $85 million in February 2008.

Cumberland launched its road show last Thursday and is hoping to price about Monday, Aug. 10. In a July filing after the Caldolor approval, the specialty pharma bumped up its range to $19-$21 from $14-$16 in a May filing. It also reduced the number of shares to 5 million from 6.3 million.

At the new mid-range, Cumberland would raise $100 million and be valued at $341.8 million. At the old mid-range, it would have raised $93.8 million and been valued at $267.6 million. The underwriters are UBS; Jefferies; Wells Fargo; and Morgan Joseph.

Biotech industry insiders are watching the offering, but with qualified interest since Cumberland is a specialty pharma and not a development stage biotech.

One late-stage company already in the queue has updated its S1: inflammation and CNS company Omeros Corp. Its lead candidate is OMS103HP, a lyophilized anti-inflammatory product that is perfused through the joint. OMS103HP is in Phase III trials for use during arthroscopic surgery to improve postoperative joint function and reduce postoperative pain, with an NDA slated for 2H10.

Meanwhile, two other specialty plays also have updated their filings in recent months: Gastrointestinal play Prometheus Laboratories Inc. and plasma-derived protein therapies company Talecris Biotherapeutics Inc.

Prometheus is profitable. Its marketed products include Lotronex alosetron to treat irritable bowel syndrome (IBS) and Entocort EC budesonide to treat mild to moderate active Crohn's disease.

Talecris, which also is profitable, had to scrap a deal to be acquired by Australian biotech CSL Ltd. (ASX:CSL) after the U.S. Federal Trade Commission said it would file a lawsuit to stop the transaction. Before the $3.1 billion (A$3.5 billion) acquisition announcement, Talecris had filed for an IPO of up to $1 billion (see BioCentury, June 15).

On the road

When Cumberland founder, Chairman and CEO A.J. Kazimi hit the road last week, he touted the potential of Caldolor, which he said could reach peak U.S. sales of $350 million and has patent protection through 2021.

The company expects to launch the pain and fever treatment in the U.S. next quarter and is in the process of tripling its hospital sales force to 77. Kazimi said the company will market the product through partners outside the U.S.

Cumberland also markets Acetadote, an antidote for acetaminophen poisoning, and Kristalose to treat chronic and acute constipation. Based on these two products, Cumberland had FY08...

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