Apimeds Pharmaceuticals Boosts IPO Size by 74% Ahead of $20 Million Offering

Apimeds Pharmaceuticals, a clinical-stage biotech firm specializing in bee venom-based treatments for inflammation, has announced a significant increase in its initial public offering (IPO) deal size. The company now aims to raise $20 million by offering 4.5 million shares at a price range of $4 to $5, marking a 74% increase from its previous proposal.

Key Takeaways

• Apimeds Pharmaceuticals is raising $20 million through an IPO.
• The deal size has increased by 74% from the initial proposal.
• The company plans to offer 4.5 million shares at $4 to $5 each.
• Insiders are set to purchase $6 million worth of shares, accounting for 30% of the offering.
• Apimeds is developing Apitox, a treatment for knee osteoarthritis.

Company Overview

Founded in 2020 and based in Hopewell, New Jersey, Apimeds Pharmaceuticals is focused on developing innovative treatments for inflammation. The company’s flagship product, Apitox, is an intradermally administered bee venom-based toxin designed to alleviate symptoms associated with knee osteoarthritis. Currently, Apitox is marketed in South Korea by Apimeds, a subsidiary of Inscobee.

IPO Details

The revised IPO details are as follows:

At the midpoint of the new price range, Apimeds Pharmaceuticals will command a fully diluted market value of approximately $58 million.

Clinical Trials and Future Plans

Apimeds Pharmaceuticals has faced challenges in its clinical trials. The company completed a Phase 3 trial in the U.S. in 2018; however, it did not meet the FDA's standards for approval due to an inadequately small study population and insufficient methods for handling missing data. In response, Apimeds is currently pursuing a second Phase 3 trial to further validate the efficacy of Apitox.

Market Position and Outlook

As Apimeds Pharmaceuticals prepares for its IPO, the biotech sector continues to attract significant investor interest, particularly in companies focused on innovative treatments for chronic conditions. The increased deal size reflects growing confidence in Apimeds' potential to deliver effective solutions for inflammation and pain management.

The company plans to list on the NYSE American under the symbol APUS, with D. Boral Capital serving as the sole bookrunner for the offering. Investors are keenly watching the developments as Apimeds moves closer to its public debut, which could pave the way for further advancements in its clinical programs and market presence.

Sources

• APUS IPO News - Inflammation biotech Apimeds Pharmaceuticals ups deal size by 74% ahead of $20 million IPO | Renaissance Capital, renaissancecapital.com.