Sagent Pharmaceuticals (SGNT)

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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

 

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Remi Cossart

Sagent Pharmaceuticals (NASDAQ:SGNT) is a pharmaceutical company which sells injectable drugs. Sagent focuses on the generic injectable market in particular. In addition to selling and marking the drugs, Sagent also develops them and brings them through the Food and Drug Administration (FDA) approval process. With its first drug approved in 2007, Sagent has had an increasing number of drugs approved from then until is IPO.^[1]

Sagnet focuses on developing generic drugs and therefore uses the Abbreviated New Drug Application (ANDA) process with the FDA. This process consists of the approval of an existing drug but simply in its generic form. Because they are the generic form of an existing drug, the approval process generally does not require the preclinical (animal) and clinical (human) trials. Instead, they must demonstrate similarity to the existing drug. By going through the ANDA process, the rate of approval is far greater and the intensity of research is lower for Sagent. However, the company may only apply for an ANDA when the patent on the non-generic version has expired.^[2]

The company's initial public offering of stock on the NASDAQ occurred on April 19, 2011. The company offered 5.8M shares each for $16. This was at the high end of the initial price range of $14-$16. This brought the total deal size to $92M. The lead underwriters of the deal were Morgan Stanley (MS), Bank of America (BAC), and Jefferies Group (JEF).^[3]

For the full year 2010, Sagent reported a total revenue of $74M. This was a substantial increase over the total revenue of $29M in 2009. However, the company reported a net loss for 2010 of $24.5M.^[4]

References

1. ↑ SGNT S-1/A 2011 PROSPECTUS SUMMARY "Overview" pg 1
2. ↑ SGNT S-1/A 2011 PROSPECTUS SUMMARY "Our Competitive Strengths" pg 3-5
3. ↑ Renaissance Capital - IPO Home "Sagent Pharmaceuticals prices upsized IPO at $16, high end of the range" 20 April 2011
4. ↑ SGNT S-1/A 2011 PROSPECTUS SUMMARY "SUMMARY HISTORICAL CONSOLIDATED FINANCIAL DATA" pg 9