Osteoporosis biotech Zosano Pharma sets terms for $33 million IPO

Zosano Pharma, which is developing a transdermal formulation of an approved osteoporosis treatment, announced terms for its IPO on Friday. The Fremont, CA-based company plans to raise $33 million by offering 3 million shares at a price range of $10 to $12. At the midpoint of the proposed range, Zosano Pharma would command a fully diluted market value of $118.2 million. In July 2014, Zosano filed to raise $70 million at a $139 million market cap, but postponed its offering.

In November 2014, Zosano significantly refocused its strategy by entering into a partnership and license agreement with Eli Lilly (NYSE: LLY) to develop its microneedle patches. Among its competitors, Zosano includes Radius Health (RDUS), the best-performing IPO of 2014, up over 400% from its offer price.

Zosano Pharma, which was spun out of Johnson & Johnson in 2006, plans to list on the NASDAQ under the symbol ZSAN. Ladenburg Thalmann & Co. and Roth Capital are the joint bookrunners on the deal. It is expected to price in January.