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NewLink Genetics (NLNK) |
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
NewLink Genetics (NASDAQ:NLNK) is a biopharmaceutical which develops drugs to help treat cancer patients.[1] The company focuses on immunotherapy - or treatment by causing the immune system to either act or cease to act. In other words, NewLink Genetics attempts to encourage the patients immune system to combat the cancerous cells rather than attempting to kill the cells directly.[2] NewLink Genetics revenues are dependent on the discovery and FDA approval of its therapies.
Business Overview
For the full year 2010, NewLink generated $2.1M in grant revenue. This was an over 100% increase from the $.9M in 2009. Since the company spends heavily on research and development, it still reported a net loss for 2010 of $16.6M. This compares to a net loss of $10.2M in 2009. [3]
New Updates
The company's initial public offering of stock on the NASDAQ occurred on November 10, 2011. The company offered 6.2M shares each for $7. The company had already planned to sell 5.5M shares. However, since they priced below the $10-$12 range, they increased shares. The deal raised a total of $43M. The lead mangers of the deal were Stifel Financial (SF) and Canaccord Genuity.[4]
Trends & Forces
Dependence on FDA approval
As of its IPO, NewLink did not have any FDA approved drugs. It's quite clear that without a completed drug, the company will be unable to produce substantial operating revenue. As a result, the company's performance is limited to actions from the FDA. Furthermore, since NewLink is in the process of developing new, untested treatments, there is no clear guidance for the likelihood of approval or the likelihood that physicians will adopt new treatments.[5]
- ↑ NLNK S-1/A 2011 PROSPECTUS SUMMARY "Overview p. 1
- ↑ American Cancer Society - Find Support and Treatment "Immunotherapy"
- ↑ NLNK S-1/A 2011 PROSPECTUS SUMMARY "Selected Financial Data p. 51
- ↑ Renaissance Capital - IPO Home "NewLink Genetics prices IPO at $7, below the range" 11 Nov 2011
- ↑ NLNK S-1/A 2011 PROSPECTUS SUMMARY "Risk Factors" pp. 11-15
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