A recent IPO caught my eyes as Deerfield Management has about 24% of the company. As far as I know, Deerfield is fundamental-driven, scientific and successful. There must be something. So I took a deeper look.
Nivalis Therapeutic Inc., (NASDAQ:NVLS) is a small development stage biotech company targeting cystic fibrosis, IPO priced at $14, and underwriter subscription helped them take home $88 million. The leading drug candidate N91115 is currently in phase 1b. The company said it will use $12 million to complete a phase 2 trial and $35 million for an anticipated phase 3 trial. From the time Deerfield took positions in the board, it seems they helped the company design the strategy and redirect research focus to current leading drug.
The drug N91115 piggybacks on soon-to-be approved treatments from Vertex Pharmaceuticals (NASDAQ:VRTX) to enhance effectiveness and outcomes. Basically, the success of NVLS hinges on three things:
a).Successful commercialization of Vertex’s Orkambi;
b).Proof of clinical benefits in N91115;
c).Vertex’s willingness to acquire them.