San Diego Life Sciences Roundup: IPOs, CareFusion, and More
The IPO market continued to chill for life sciences companies, as generalist investors apparently lost their enthusiasm for the sector. Here are the details, along with the rest of San Diego’s life sciences news.
—San Diego-based Vital Therapies postponed its IPO, as investor demand for biotech stocks cooled, especially among the institutional investors who don’t specialize in the life sciences sector. Vital Therapies has been developing an artificial liver for treating acute liver failure. The company wanted to raise $75 million by offering 4.4 million shares at $16 to $18 a share.
—Despite tougher market conditions, San Diego’s Biocept Laboratories is still proceeding with its planned IPO, setting the terms for its public-market debut with a price range between $10 and $12. The cancer diagnostics specialist hopes to raise $20 million by offering 1.8 million shares. At the midpoint of the proposed range, Biocept Laboratories would command a fully diluted market value of $52 million.
—San Diego’s CareFusion (NYSE: CFN) said it would pay $500 million to acquire the respiratory care and anesthesiology products business of GE’s Vital Signs subsidiary. Vital Signs generates annual revenue of $250 million, and CareFusion chairman and CEO Kieran T. Gallahue said the Vital Signs business is “well-aligned” with CareFusion’s long-term growth strategy and helps build an international presence. CareFusion makes Pyxis automated drug dispensing machines, Alaris intravenous pumps, ventilators, and other products.
—San Diego-based Cardium Therapeutics (NYSE: CXM) said it sold a nutritional supplement business called “To Go Brands” to Connecticut-based Cell-nique Corp. in a deal worth $2.5 million. Cardium develops topical wound care gels, heart disease medications, and other products, and has a market valuation of slightly more than $5 million. Earlier this year, Cardium sold its InnerCool subsidiary to a U.S. affiliate of Philips for roughly $12.5 million.
—San Diego’s Adamis Pharmaceuticals, which is developing treatments for asthma, said it has filed for a secondary public offering that could be as much as $25 million and plans a reverse stock split of its common stock. The company hopes to move its listing from the over-the-counter market, where it trades under the ticker symbol ADMP, to the Nasdaq market. Adamis intends to use about $7 million of the net proceeds to make the final payment to 3M to acquire the assets relating to the Taper dry-powder inhaler technology.