Evolus Gears Up for IPO

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Evolus has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering. The company expects to price its 5.0 million shares in the range of $12 to $14 per share, with an overallotment option for an additional 750,000 shares. At the maximum price, the entire offering is valued up to $80.5 million. The company intends to list its shares on the Nasdaq under the symbol EOLS.

The underwriters for the offering are Cantor, Mizuho Securities, SunTrust Robinson Humphrey and JMP Securities.

This is a medical aesthetics company focused on providing physicians and their patients with expanded choices in aesthetic procedures and treatments. The firm is focused on the self-pay aesthetic market and its first product candidate, prabotulinumtoxinA (DWP-450), is an injectable 900 kilodalton (kDa) botulinum toxin type A complex designed to address the needs of the large and growing facial aesthetics market.

Management believes it will offer physicians and patients a compelling value proposition with DWP-450. Currently, onabotulinumtoxinA (Botox) is the neurotoxin market leader and the only known approved 900 kDa botulinum toxin type A complex in the United States.

The U.S. Food and Drug Administration (FDA) issued a Prescription Drug User Fee Act date of May 15, 2018, for completion of its review of our Biologics License Application (BLA). Evolus also submitted a Marketing Authorization Application (MAA) to the European Medicines Agency (EMA), and it was accepted for review in July 2017 with a decision that it expects by the second half of 2018. It has also submitted a New Drug Submission (NDS) to Health Canada, and it was accepted for review in October 2017, with a decision that is expected by the second half of 2018.

The company intends to use the net proceeds from the offering as follows:

  • Upon U.S. and EU regulatory approval of DWP-450, to pay certain milestone payments to Daewoong and the Evolus contributors pursuant to the Daewoong Agreement and amended purchase agreement, respectively, as well as one-time bonuses to certain of our employees.
  • To conduct pre-commercial launch activities, including building its commercialization infrastructure to hire, train, deploy and support a specialty sales force and developing physician education, brand awareness campaigns and other marketing efforts.
  • To remunerate Alphaleon for a portion of the outstanding related party borrowings.
  • The remainder for working capital, research and development and general corporate purposes.