On Thursday July 16th, NantKwest (NASDAQ/NK), a healthcare provider producing cancer therapies, filed its initial public offering (IPO) documents with the Securities and Exchange Commission (SEC). Here’s what investors need to know about the upcoming NantKwest IPO.
Who is NantKwest?
NantKwest is the 51st healthcare company to go public this year, yet its post-IPO valuation could shatter industry records. The company was previously known as Conkwest Inc. and is headquartered in Cardiff-by-the-Sea, California.
What is NantKwest’s Business Model?
NantKwest is in the nascent field of immunotherapy, a branch of medicine dedicated to “harnessing the power of the innate immune system by using the natural killer cell to treat cancer.” (Source: Nantkwest SEC Filings, July 16, 2015.)
It enables the body’s natural defences to combat various ailments rather than simply introducing foreign toxins into patients’ bodies. By producing cells to fight cancer and other illnesses, NantKwest also acts as a supplier to other pharmaceutical firms that develop chemotherapy treatments.
What is NantKwest’s Revenue?
NantKwest’s earning jumped by 6.8% between 2013 and 2014, up from $600,000 to $641,000. The company is projected to make a loss in 2015, having brought in just $120,000 in revenue during the first three months of the year.
What is NantKwest’s IPO Price?
NantKwest is offering seven million shares in the IPO. The company is expecting shares to trade between $20.00 and $23.00, bringing the firm’s predicted value to $150.5 million when calculating with the midpoint estimate.
What is NantKwest’s Stock Symbol?
After selecting the NASDAQ stock exchange as its platform of choice, the company hopes to trade under the ticker symbol, “NK.”
How will NantKwest Use the Money?
For the most part, the company will use the money to pursue approvals from the Federal Food and Drug Administration (FDA), with $30.0 million of overall funds dedicated directly towards clinical trials. Another $10.0 million will be used to build a manufacturing facility and hire new personnel.