A Medical Device Daily
ImaRx (Tucson, Arizona), a company that develops therapies for vascular disorders associated with blood clots, has filed with the Securities and Exchange Commission for an IPO of about 3 million shares priced at $5 a share.
The company, which reported last May that it had filed with the SEC for an IPO of up to $75 million (Medical Device Daily, May 26, 2006), now expects to raise about $12.3 million from the IPO after expenses, or $14.4 million if the underwriters' 45-day over-allotment option to buy 450,000 shares is exercised in full. Shares are anticipated to begin trading Thursday.
The company's development efforts are primarily focused on therapies for treating ischemic stroke and massive pulmonary embolism by restoring the flow of blood and oxygen to the brain and vital tissues, and clearing occluded catheters.
ImaRx plans to use proceeds from the offering to fund the development and commercialization of its therapies, including clinical trials. The proceeds also will be used for working capital and other general purposes, according to the company's SEC filing.
ImaRx reported a history of net losses and negative cash flow from operations since its inception. In the quarter ended March 31, 2007, the company generated product revenue of about $1.1 million and has funded its operations primarily from private sales of its securities. Net losses attributable to common stockholders for the fiscal years ended Dec. 31, 2004, 2005, and 2006 were roughly $6 million, $28.5 million, and $1.9 million, respectively, and for the quarters ended March 31, 2006 and 2007 ImaRx said it had net losses of about $3.5 million and $2.8 million, respectively.
As of March 31 the company had an accumulated deficit of about $65.5 million. Except for Abbokinase, which it acquired from Abbott Laboratories (Abbott Park, Illinois) in April 2006, the company does not have regulatory approval for any of its products. Abbokinase is FDA-approved for the treatment of acute massive pulmonary embolism.
ImaRx also said in the SEC filing that its independent public accounting firm has expressed "substantial doubt" about the company's ability to continue as a going concern. The company said it believes, however, that the completion of this offering will eliminate that doubt and allow it to continue as a going concern "at least in the near term."
The company is pursuing two development programs as the foundation for its products. The first program is a group of clot-dissolving drugs, or thrombolytics, that are variants of urokinase, a natural human protein primarily produced in the kidneys that stimulates the body's natural clot-dissolving processes.
The second program, SonoLysis therapy, centers on a treatment that breaks blood clots apart by applying ultrasound to the company's submicron-sized bubbles, which it calls SonoLysis bubbles.
ImaRx licensed the oxygen delivery technology that is being incorporated with its SonoLysis therapy from Sonus Pharmaceuticals (Bothell, Washington) two years ago (MDD, July 12, 2005).
In other financing news, Clinical Data (Newton, Massachusetts) reported that the underwriters of its public offering that closed Monday have exercised an over-allotment option to buy an additional 450,000 shares of common stock.
Clinical Data now expects to receive net proceeds of about $71.5 million after underwriting discounts and commissions. The company plans to use the proceeds to fund clinical trial activities, preclinical R&D activities and for other general corporate purposes.