ActivBiotics sets $12-$14 per share target for upcoming IPO

By Jennifer Chiou

New York, Oct. 23 - ActivBiotics, Inc. set price talk for its upcoming 4 million share initial public offering at $12.00 to $14.00 per share in an S-1/A registration with the Securities and Exchange Commission on Monday.

On Aug. 14, the company filed for an estimated $46 million initial public offering.

HSBC Securities (USA) Inc. is bookrunner for the offering, with Neeham Co. LLC acting as joint lead and BMO Capital Markets Corp. and Susquehanna Financial Group LLLP as co-managers. The underwriters will be granted an over-allotment option.

ActivBiotics is a development-stage biopharmaceutical company based in Lexington, Mass., focused on developing and commercializing therapies for the treatment of inflammatory diseases and bacterial infections.

The company's lead product, Rifalazil, is a orally administered antibacterial agent undergoing phase 3 clinical testing for the treatment of intermittent claudication - pain, cramping or fatigue in the lower extremities brought on by exertion - association with peripheral arterial disease. Efficacy and safety data from the trial is expected to be released in the third quarter of 2007. The company is also conducting phase 2 clinical trials of Rifalazil for the treatment of carotid artery atherosclerosis.

The company's other two products are M40403 for the treatment of post-operative ileus - abdominal bloating, pain, constipation, nausea and vomiting - and ABI-0043 for the treatment of skin and skin structure infections. They are in phase 2 and preclinical testing stages, respectively.

IPO proceeds will be used primarily to fund clinical trials and other research and development activities for Rifalazil and M40403. The remainder will be used to fund working capital and other general corporate purposes, including research and development for ABI-0043.

The company had 18,441,292 shares of common stock and 13,887,268 shares of redeemable convertible preferred stock outstanding at July 31.

Entities affiliated with HealthCare Ventures are the largest stockholders with 6,136,147 shares for 33.3% of the pre-IPO common stock total. Entities affiliated with Advent Ventures are second with 1,655,353 shares for 9% of the equity.

ActivBiotics had a net loss of $4.87 million and no revenue for the quarter ended March 31. Cash and cash equivalents were $15.66 million at March 31.

Research and development costs for the quarter ended March 31 were $2.68 million.

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

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