PaxMedica (PXMD) Refiles Terms For Smaller IPO


Jatuporn Tansirimas

A Quick Take On PaxMedica

PaxMedica (PXMD) intends to lift round $8.5 million from the sale of its frequent stock in an IPO, in line with an amended registration statement.

The firm is creating remedy candidates for numerous neurodevelopment situations.

PXMD is thinly capitalized, though it seems to have made some progress on its early trial actions.

Given the excessive danger profile of PXMD, I’m on Hold for the IPO.

PaxMedica Overview

Woodcliff Lake, New Jersey-based PaxMedica was based to advance packages primarily based on anti-purinergic therapies for East African HAT and neurodevelopmental issues comparable to autism spectrum dysfunction (ASD) and Fragile X syndrome tremor-ataxia.

Management is headed by Chief Executive Officer Mr. Howard Weisman, who has been with the agency since March 2020 and was beforehand founder and Executive Chairman of Sofregen, a scientific stage biomedical machine agency within the reconstructive cosmetic surgery trade.

The agency’s lead candidate, PAX-101, is an intravenous-delivered suramin formulation that it’s creating for autism, Fragile X and Human African Trypanosomiasis (HAT).

PXMD believes it will possibly obtain regulatory approval for the HAT indication, then monetize the potential receipt of an FDA precedence assessment voucher with a view to fund its different indication packages.

Investors within the agency have invested not less than $1.2 million and embrace TardiMed Sciences.

Market & Competition

According to a 2018 market research report by Market Research Future, the worldwide market for autism spectrum dysfunction (ASD) remedies was valued at $5.1 billion in 2016.

This represents a forecast CAGR (Compound Annual Growth Rate) of 4.73% from 2017 to 2023.

Key parts driving this anticipated progress are continued progress within the vary of neurodevelopmental dysfunction incidence in addition to rising governmental help and forecasted approvals of assorted off-label remedy choices by the FDA.

However, the market faces a small pipeline of medication because of the usually ‘unknown etiology and pathophysiology of ASD.’

Major aggressive distributors that present or are creating remedies embrace:

  • CureMark

  • Yamo Pharmaceuticals

  • GW Pharmaceuticals

  • Zynerba Pharmaceuticals

  • QBioMed

  • Other main pharma companies

Management says there may be ‘no recognized treatment for ASD, and no FDA permitted remedy to deal with the core signs of ASD.’

Financial Status

PXMD’s current monetary outcomes are typical of a improvement stage biopharma agency in that they characteristic important R&D and G&A bills related to its drug candidate improvement actions.

Below are the corporate’s monetary outcomes for the previous two calendar years:

Company Statement Of Operations

Company Statement Of Operations (SEC EDGAR)

As of March 31, 2022, the corporate had $49,383 in money and $8.6 million in complete liabilities. (Unaudited, interim)

PXMD IPO Details

PXMD intends to promote 1.5 million shares of frequent stock at a proposed midpoint value of $5.50 per share for gross proceeds of roughly $8.5 million, not together with the sale of customary underwriter choices.

No present or doubtlessly new shareholders have indicated an curiosity to buy shares on the IPO value.

Assuming a profitable IPO on the midpoint of the proposed value vary, the corporate’s enterprise worth at IPO (excluding underwriter choices) would approximate $72 million.

The float to excellent shares ratio (excluding underwriter choices) can be roughly 10.62%. A determine underneath 10% is mostly thought-about a ‘low float’ stock, which might be topic to important value volatility.

Per the agency’s most up-to-date regulatory submitting, it plans to make use of the online proceeds as follows:

roughly $2.5 million for drug-substance procurement and supply-chain actions;

roughly $2.5 million for the scientific and regulatory improvement actions associated to the HAT, ASD, ME/CFS and LCS indications;

as much as $50,000 to repay the excellent quantities due underneath the 2022 Notes that aren’t topic to the 2022 Convertible Note Conversion Agreements, to the extent they aren’t transformed; and

roughly $2.0 million for working capital and basic company functions.

(Source – SEC)

Management’s presentation of the corporate roadshow is available here till the IPO is accomplished.

The agency says it isn’t a celebration to any materials authorized proceedings.

Listed underwriters of the IPO are Craft Capital Management and R.F. Lafferty & Co.

Commentary About PaxMedica

PaxMedica is searching for a small IPO to advance its PAX-101 candidate by means of trials for numerous indications. It beforehand sought a $15 million IPO transaction in mid-2020.

For its lead candidate, administration plans to hunt U.S. FDA advertising and marketing approval for the remedy of East African HAT after which leverage such approval for increasing the scope of remedy to ASD, ME/CFS and LCS.

The market alternatives for the varied situations lined by the drug candidate are massive, however progress traits are unknown.

The agency has disclosed no analysis or business collaborations, so is pursuing a ‘go-it-alone’ strategy at the moment.

Craft Capital Management is the lead underwriter, and there’s no information on the agency’s IPO involvement during the last 12-month interval.

As for valuation, administration is asking IPO traders to imagine an enterprise worth of round $72 million, larger than its earlier IPO try at $59 million.

Now, as in its earlier IPO, the corporate is valued at a far decrease valuation than is typical for a biopharma agency at IPO.

Also, the agency continues to be very thinly capitalized, though it seems to have made some progress on its early trial actions.

Given the excessive danger profile of PXMD, I’m on Hold for the IPO.

Expected IPO Pricing Date: To be introduced

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