Cempra (NASDAQ:CEMP) is a pharmaceutical company which is developing antibiotics to combat infectious bacteria. Cempra's research has focused on respiratory tract infections and staphylococcal (staph) infections. Using its research for its main drug candidates, Cempra plans to develop future antibacterial drug candidates which can treat other infections. At the time of its IPO, Cempra did not have any drugs approved by the FDA.
Because Cempra does not have any commercial drugs, it did not generate any revenues prior to its IPO. For the full year 2010, Cempra reported a net loss of $19.7M. For the nine months ended in September of 2011, Cempra reported a net loss of $18.4M. As expected, the majority of its costs come from research and development. 
The company's initial public offering of stock on the NASDAQ occurred on February 2, 2012. The company offered 8.4M shares each for $6. This was well below the $11-$13 initial price range. The deal raised a total of $50M. The lead mangers of the deal were Stifel Nicolaus Weisel, Leerink Swann, and Cowen & Company.
Cempra is dependent on its lead drugs to generate revenues. At the time of its IPO, Cempra did not have any FDA approved drugs. By the time its lead drugs is up for FDA approval, Cempra will have incurred significant debt. If the drug fails to be approved or is approved but is not commercially successful, the company may be unable to push another drug through the FDA approval process.