CyDex Pharmaceuticals IPO

More and more IPOs are coming in the markets.
Visa IPO (read review of VISA IPO) is underway, along with Pogo Jet IPO (read review of Pogo Jet IPO). Yesterday, online advertising firm Eyeblaster applied for and IPO.

Today, the US Drug manufacturing company CyDex Pharmaceuticals Inc. has filed an application with SEC or Securities and Exchange Commission. CyDex plans an initial public offering shares through this IPO.

Based in Kansas the drug company has not yet revealed any details about the price band of the CyDex IPO, nor was there any information about the expected size of the CyDex IPO. However, if we consider the registration fees paid to the SEC for IPO, the offering price may sum up to $50 million. CyDex mentioned the total offering price was estimated solely to calculate its registration fee and may change.
CyDex has a nice collection of 12 different products, which use a drug formulation technology based on its patented Captisol cyclodextrins. Captisol cyclodextrins are designed to improve solubility, stability, bioavailability, safety and dosing of a number of active pharmaceutical ingredients.
CyDex has outlicensed its Captisol technology to a number of companies and has more than 30 agreements in place. The company currently receives royalties from Pfizer Inc. on its sales of Geodon IM, a treatment for bipolar disorder and schizophrenia; antifungal product Vfend IV; and Cerenia, which prevents motion sickness in dogs. It also receives revenue from Bristol-Myers Squibb Co. for Abilify Injection IM, which also treats bipolar disorder and schizophrenia.
As per the financial results of CyDex for 2007, it managed to earn $3.8 million in royalty revenue from outlicensees.

Related: Should you apply for an IPO?

CyDex plans to use the proceeds from the IPO to support clinical trials and further product development, to build its internal infrastructure and capabilities, and for working capital and other general corporate purposes.
However, it was a loss making year for CyDex in 2007.

CyDex posted a loss after paying preferred dividends of $7.1 million, versus a loss of $2.1 million in 2006. The company's revenue grew to $12.7 million, from $11.6 million in the previous year. CyDex plans to list its shares on the Nasdaq Stock Market with the symbol "CYDX."

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