ActivBiotics withdraws proposed IPO

By Jennifer Chiou

New York, Nov. 13 - ActivBiotics, Inc. pulled its planned initial public offering, citing market conditions, in a letter to the Securities and Exchange Commission.

On Nov. 9, the company lowered price talk for the 4 million share IPO to $8.00 to $10.00 per share in an S-1/A registration with the SEC.

On Oct. 23, ActivBiotics originally set price talk at between $12.00 and $14.00 per share.

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

HSBC Securities (USA) Inc. was to be 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 would have been 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 were to 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.

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.

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

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