Jupiter Neurosciences Stock Readies Plan For $15 Million IPO (Pending:JUNS)

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A Quick Take On Jupiter Neurosciences

Jupiter Neurosciences, Inc. (JUNS) has filed to boost $15 million in an IPO of its frequent stock, in keeping with an S-1/A registration assertion.

The agency is creating remedy candidates for numerous sorts of neuroinflammation circumstances.

While I want JUNS nicely, the agency is pursuing very difficult traces of analysis, seems to be thinly capitalized, and has no main pharma agency collaborations or institutional life science enterprise capital buyers.

I’m on maintain for the Jupiter Neurosciences IPO.

Jupiter Overview

Jupiter, Florida-based Jupiter was based to develop resveratrol-based remedies for neuroinflammation, lysosomal storage illnesses, ataxias and mitochondrial problems.

Management is headed by co-founder, Chairman and CEO Christer Rosén, who has been with the agency since inception in 2016 and was beforehand founder and CEO EffRx Pharmaceuticals the place he led improvement and approval of the osteoporosis remedy Binosto.

The agency’s lead candidate is JNS101 being examined for the remedy of Friedreich’s Ataxia. The drug is presently making ready for Phase II trials.

Below is the present standing of the corporate’s drug improvement pipeline:

Company Pipeline

Company Pipeline (SEC EDGAR)

Jupiter has booked truthful market worth funding of $9.3 million as of June 30, 2022 from buyers.

Jupiter’s Market & Competition

According to a 2022 market research report by Coherent Market Insights, the worldwide market for remedies for Freidreich’s ataxia is an estimated $777 million in 2022 and is forecast to achieve $2.06 billion in 2030.

This represents a forecast CAGR (Compound Annual Growth Rate) of CAGR of 13.0% from 2022 to 2030.

Key components driving this anticipated progress are continued improvement of accredited remedy choices together with inorganic enterprise collaborations and acquisitions.

Also, by area, North America is anticipated to carry the biggest demand for remedies through the forecast interval by way of 2030.

The firm is pursuing drug remedy testing for different multi-billion greenback dimension markets.

Major aggressive distributors that present or are creating associated remedies embody:

  • Sanofi

  • RegenexBio

  • Sigilon Therapeutics

  • Sangamo Therapeutics

  • Reata Pharmaceuticals

  • Minoryx Therapeutics

  • Larimar Therapeutics

  • Cyclerion Therapeutics

  • Abliva

  • Amylyx

  • Eledon Pharmaceuticals

  • Biogen

  • Eli Lilly

  • Others

Jupiter Neurosciences Financial Status

The agency’s current monetary outcomes are considerably typical of a improvement stage biopharma however they function some federal contract income.

Below are the corporate’s monetary outcomes for the three and 6 months ended June 30, 2021 and 2022:

Statement Of Operations

Statement Of Operations (SEC EDGAR)

As of June 30, 2022, the corporate had $598,543 in money and $7.0 million in whole liabilities.

Jupiter Neurosciences IPO Details

Jupiter intends to boost $15 million in gross proceeds from an IPO of its frequent stock, providing 2.5 million shares at a proposed midpoint value of $6.00 per share.

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

Assuming a profitable IPO, the corporate’s enterprise worth at IPO would approximate $45.2 million, excluding the results of underwriter over-allotment choices.

The float to excellent shares ratio (excluding underwriter over-allotments) can be roughly 26.35%.

Management says it should use the web proceeds from the IPO as follows:

roughly $350,000 to fund IND submissions for Friedreich’s ataxia, MELAS and MCI/early Alzheimer’s Disease;

roughly $75,000 to pay the annual license charge to Aquanova AG;

roughly $900,000 to fund manufacturing of medical trial provides of JOTROLTM;

roughly $4,000,000 to fund Phases II medical trials of our product candidate JOTROLTM in sufferers with MPS I later adopted by an initiation of Phase II in MELAS and Friedreich’s ataxia within the first half of 2024;

roughly $250,000 to fund preclinical R&D for TBI/Concussion and ALS;

roughly $4,000,000 to ascertain and develop our enterprise in China and South East Asia; and

the rest to fund normal analysis and improvement actions, working capital and different normal company actions.

Based on our present working plan, we consider that the web proceeds from this providing, along with our present money and money equivalents, can be enough to fund our operations by way of a minimum of the following 24 months.

(Source – SEC)

Management’s presentation of the corporate roadshow shouldn’t be accessible.

Regarding excellent authorized proceedings, the agency is being sued for non-payment within the whole quantity of $150,000 by a beforehand used communications and investor relations firm.

The sole listed bookrunner of the IPO is Spartan Capital Securities.

Commentary About Jupiter’s IPO

JUNS is in search of public capital market funding to fund additional improvement of its pipeline of neurological system drug candidates.

The agency’s lead candidate, JNS101, is being examined for the remedy of Friedreich’s Ataxia. The drug is presently making ready for Phase II trials.

The market alternatives for the varied circumstances and illnesses the corporate is in search of to deal with are giant and anticipated to develop at average to quick charges of progress, though the agency faces materials competitors from main market contributors.

Management has not disclosed any main pharma agency collaboration relationships, though it does have a relationship with a expertise companion, Aquanova AG, for JOTROL.

The firm’s investor syndicate doesn’t embody any extensively identified institutional life science enterprise capital companies.

Spartan Capital Securities is the only real underwriter and the 2 IPOs led by the agency during the last 12-month interval have generated a median return of destructive (64.4%) since their IPO. This is a bottom-tier efficiency for all main underwriters through the interval.

Management believes that its JOTROL program can cross the blood-brain barrier and ship a therapeutically efficient dose of resveratrol to the bloodstream with out inflicting gastro-intestinal issues.

As for valuation, the IPO is valued at a degree that’s far beneath the everyday institutional-backed biopharma.

While I want JUNS nicely, the agency is pursuing very difficult traces of analysis, seems to be thinly capitalized, and has no main pharma agency collaborations or institutional life science enterprise capital buyers.

I’m on Hold for the Jupiter IPO.

Expected IPO Pricing Date: To be introduced.



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