In preparation for its initial public offering (IPO), the Australian-based Benitec Biopharma Ltd (NASDAQ:BNTC) revealed a price target and expected launch date of the week of August 3, 2015. Here’s what investors need to know about the upcoming Benitec Biopharma IPO.
Who is Benitec?
Benitec is a clinical-stage biotechnology firm that has a proprietary therapeutic technology platform in development which combines gene silencing and gene therapy with the goal of providing sustained, long-lasting silencing of disease-causing genes from a single administration. The company specializes in RNA interference technology, or RNAi, the subject of a Nobel Peace Prize several years ago.
What is Benitec’s Business Model?
The majority of Benitec’s research and development efforts have focused on its Hepatitis C drug, accounting for approximately two-thirds of spending in 2014. A marginal amount of research went towards partnership drugs. The company produces big-market drugs in-house, with large market growth potential. Moreover, it has a strong portfolio of licensed drug indications and solid support in the form of government grants.
How Big is Benitec’s Portfolio?
Benitec’s strength is its diverse in-house drug pipeline of big market-potential drugs, along with licensing potential in regards to third-party researchers and producers. The company’s proprietary drug technology platform is being licensed out to other biotechs for several indications.
Revenue is generated through grants, courtesy of the Australian government. The company’s revenue stream is not tied to product sales, so it posted a loss last year, but it generates a substantial cash flow through grants to offset high administrative and research costs.
What is Benitec’s IPO Price?
The target price for Benitec’s IPO is $13.06 per share. Proceeds from the IPO’s five million shares could raise $65.0 million in equity.
What is Benitec’s Stock Symbol?
Benitec plans to be listed on the NASDAQ under the ticker symbol “BNTC.”
How Will Benitec Use the Money?
As Benitec operates at a loss and currently generates no income through sale of its products, the money raised will be put into research and development. The company aims to have profitable, novel, and revolutionary one-shot drugs ready within the next few years, but requires a substantial operating budget to do so.