These three small companies are dreaming big. Each aims to make a major impact in a different disease state. If you have an appetite for innovation and a tolerance for risk, these upcoming 2019 biotech IPO’s could appeal to you…
1. STOKE THERAPEUTICS ($STOK)
Stoke describes its mission as the following:
“Stoke’s proprietary TANGO technology platform can be used to treat a broad spectrum of genetic diseases in which the patient has one healthy copy of a gene and one mutated copy that fails to produce a protein essential to health. These diseases, in which loss of approximately 50% of normal protein expression causes disease, are called autosomal dominant haploinsufficiencies.
Using our proprietary TANGO platform, we aim to increase protein production from the remaining healthy copy of a gene and to restore the protein to near normal levels, thereby slowing or stopping disease progression.”
In other words, Stoke aims to help sick bodies make more of proteins that are lacking. The TANGO technology is their entry into the super hot world or Messenger RNA, a realm where competitors such as Moderna ($MRNA) have already had early success.
The first disease they are targeting is Dravet’s Syndrome, a catastrophic form of epilepsy that occurs in one out of 21,000 babies. Dravet’s is considered an ideal starting place for the TANGO technology because it is caused by just one broken gene, and the rarity of the disease means competition in the niche will be limited.
The company lost $12.5 million with $0 in revenue in 2018. It is aiming for a roughly $430 million dollars valuation, with an initial share price range of $14-$16.
2. PERSONALIS ($PSNL)
Personalis offers a proprietary platform for cancer research, especially in the immunotherapy development field. The company plans to partner with active oncology practitioners and researchers in the following three niches: ImmunoOncology treatment, Oncology research, and Oncology Diagnostics. The company boasts that it can provide the most comprehensive genomic analysis of a tumor from a single sample.
Personalis lately announced a partnership with the Parker Institute for Immunotherapy by which the Institute will utilize the ImmunoIDNext technology to research relevant biomarkers for cancer immunotherapy. The company booked $48 million in sales for the 12 months ended March 31, 2019. If shares price in the expected $14-$16 range, Personalis will start its life as a public company with a market value of about $430 million.
3. PREVAIL THERAPEUTICS ($PRVL)
Prevail also seeks to pioneer cures through gene therapy. Specifically, Prevail is focusing on Parkinson’s disease and other neurodegenerative diseases. Prevail is partnered with Regenex Bio and the non-profit Silverstein Foundation.
The company’s core hypothesis is that restoring healthy lysosomal function in the cells of a patient’s central nervous system could stop the progression of neurodegenerative disease.
On June 4th, Prevail received permission from the FDA to move forward with phase 1& phase 2 testing of it’s lead Parkinson’s candidate, PR-001. The first patients should be dosed by the end of 2019.
The company plans to raise $125 million dollars through its IPO, with shares pricing in the range of $16 to $18. If shares price in the middle of this range, Prevail will be worth approximately $670million immediately after the shares hit the market.
Barbeques, swimming parties, and blazing biotech IPO’s. Enjoy your long, hot summer…..