Histogenics Proposes $65M IPO )HealthPointCapital)
Histogenics Corporation filed an S-1 to raise up to $65 million through an initial public offering (IPO) of common shares. The price range and number of shares to be sold in the offering has not yet been determined.
Histogenics’ principal stockholders Sofinnova Venture Partners, Split Rock Partners and Wilmslow Estates Limited, have indicated an interest in purchasing an aggregate of up to $15 million of common stock through this offering. Furthermore, Intrexon Corporation, which holds a convertible promissory note in the principal amount of $10 million that will convert into common stock through this IPO, has indicated an interest in purchasing up to an additional $15 million in this offering as well.
The company plans to use the proceeds primarily to develop and advance its regenerative medicine platform, NeoCart, through a Phase 3 clinical trial, to build a new manufacturing facility, and for working capital and general corporate purposes.
Histogenics is biologics company that develops regenerative medicine products for the treatment musculoskeletal-related conditions. The company offers NeoCart, a cartilage-like implant for treating damage to the articular cartilage of the knee by utilizing a patient’s own cartilage cells through a series of tissue engineering processes. Through the acquisition of ProChon in May of 2011, Histogenics also offered BioCart, an autologous cartilage system for the restoration of injured or chronically damaged tissues. Sales of BioCart have since been suspended.
For the 2013 fiscal year, Histogenics reported total revenue of $8,000, decreasing from $26,000 in 2012. The company does not expect to generate any future revenue until it has successfully completed the development of NeoCart or other future product candidates.
The company plans to list on the NASDAQ Global Market (NasdaqGM) under the ticker symbol “HSGX”. Cowen & Company, Needham and Canaccord Genuity are serving as Joint Bookrunners on the deal, while BTIG will serve as a Co-manager.