October 3, 2014
By Jessica Wilson, BioSpace.com Breaking News Staff
Specialty biopharmaceutical company Dermira announced on Thursday it was offering 7.8 million common stock shares in the company’s initial public offering, representing a 46 percent increase in the deal.
The company set the price for the shares, which began trading on the NASDAQ under the symbol DERM on Thursday, at $16, with the goal of raising $117 million. Redwood City, Calif.-based Dermira exceeded this goal, saying today it has thus far raised $125 million for its IPO.
The biotech firm’s products target skin conditions such as psoriasis, excessive sweating and acne, as well as other diseases that comprise the basis for the $21 billion medical dermatology market.
The company has five drugs in its pipeline. The most advanced in development is Cimzia, an injectable tumor necrosis factor (TNF) inhibitor for the treatment of plaque psoriasis. Cimzia has completed Phase IIb clinical trials. Dermira’s second most developed drug is DRM04, a topical anticholinergic for the treatment of hyperhidrosis, also known as excessive sweating, which is currently in Phase IIb clinical trials. The company’s third most developed drug is DRM01, a topical sebum inhibitor for the treatment of acne, which has completed Phase IIa clinical trials.
Dermira also has two drugs in the pre-clinical testing phase. One, DRM02, is a topical phosphodiesterase 4 (PDE4) inhibitor for the treatment of inflammatory diseases. The other, DRM05, is a topical photodynamic therapy (PDT) for the treatment of acne.
Citigroup and Leerink Partners are acting as joint book-running managers for the offering. Guggenheim Securities and Needham & Company are acting as co-managers.
The company stated in a press release that in addition to the stocks offered to the public, “Dermira has granted the underwriters a 30-day option to purchase up to an additional 1,171,875 shares of common stock to cover over-allotments, if any. Concurrently with the offering, Dermira is also selling through a private placement 468,750 shares of its common stock to UCB S.A., an existing stockholder, at the initial public offering price.”
