This was not a good year for the equity capital markets for initial public offerings (IPOs) and secondary offerings. In fact, issuance was way down from 2014, when such huge deals as Alibaba came public. But while issuance was down, there were some incredible deals that not only brought some great companies public, but also could have some bigger players thinking acquisition.
While some very high-profile companies like Ferrari and FitBit began trading publicly this year, neither one was among the top 10 performers. We screened the IPOs for 2015 and found the top 10 performers in terms of percentage gains. Then we looked for the companies that could have the most compelling price and technology that larger companies could be interested in.
Three biotech deals that were awesome performers may also be right in the sights of a larger biotech or pharmaceutical company looking to add the niche clinical edge that they bring to the table.
This company was the second top performer this year and made its debut on May 7. Collegium Pharmaceutical Inc. (NASDAQ: COLL) was priced at $12 on the deal and closed last Thursday at $25.01, up a stunning 108.42%. The company also was added recently to the Nasdaq Biotechnology index. We noted last week that the company has filed for a secondary offering.
Collegium is a specialty pharmaceutical company focused on developing a portfolio of products that incorporate its patent-protected DETERx technology platform for the treatment of chronic pain and other diseases. The DETERx oral drug delivery technology is designed to provide extended-release delivery, unique abuse-deterrent properties, and flexible dose administration options.
Collegium’s lead product candidate, Xtampza ER, is an abuse-deterrent, extended-release, oral formulation of oxycodone, in development for the management of pain severe enough to require daily, around-the-clock, long-term opioid treatment and for which alternative treatment options are inadequate. Collegium developed Xtampza using its proprietary DETERx technology platform to address common methods of abuse, including chewing, crushing and/or dissolving, and then taking it orally or snorting or injecting.
The United States Food and Drug Administration (FDA) has granted tentative approval to the company’s New Drug Application for Xtampza ER. With a tentative approval, the FDA has determined that Xtampza ER meets the required quality, safety and efficacy standards for approval but it is subject to an automatic stay of up to 30 months as a result of patent litigation filed by Purdue Pharma.
Any of the big pharmaceuticals looking to add a strong product and technology could look at Collegium. But it also has the deep pockets to fight the patent litigation.
The Thomson/First Call price target for the stock is $27, the shares closed Thursday at $25.01. The company has a market cap of $517 million.