QuatRx Pharmaceuticals files for $86.25 million IPO

By Ted A. Knutson

Washington, Feb. 3 - QuatRx Pharmaceuticals Co. filed for an estimated $86.25 million initial public offering of stock in an S-1 registration with the Securities and Exchange Commission.

The Ann Arbor, Mich.-based firm is a pharmaceutical company focused on discovering, licensing, developing and commercializing compounds in the endocrine, metabolic and cardiovascular therapeutic areas.

The firm's two lead product candidates treat hormone deficiencies that result from aging in men and women.

Ospemifene, QuatRx's treatment for vaginal atrophy, a common problem associated with estrogen deficiency in post-menopausal women, has entered phase 3 clinical testing. It is estimated that there are 145 million post-menopausal women in North America, Europe and Japan and that between 10% and 40% of them suffer from vaginal atrophy.

Fispemifene, the firm's treatment for the symptoms of andropause in aging males, is about to enter phase 2 testing. Andropause is a condition in men caused by a gradual decline in testosterone levels that occurs naturally as men age. U.S. sales of testosterone replacement products reached $538 million in 2004, a growth rate of 40% versus the prior year.

QuatRx also has two product candidates for the treatment of elevated cholesterol levels, QRX-401 and QRX-431, in phase 1 clinical trials and advanced preclinical development, respectively.

IPO proceeds will be used for research and development and general corporate purposes.

Banc of America and SG Cowen & Co. are the joint lead managers; Lazard Capital Markets and Pacific Growth Equities LLC are co-managers.

QuatRx had a $37.16 million operating loss on no revenue for the first nine months of 2005 compared with an operating loss of $6.99 million for the same period in 2004.

MPM Bioventures III is the largest stockholder with 21.31 million shares for 27.5% of the pre-IPO total. TL Ventures is second with 9.36 million shares for 12.1% of the equity.

The company has applied to list its common stock on the Nasdaq National Market under the symbol "QTRX".

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