Growth hormone biotech Ascendis Pharma sets terms for $85 million IPO

Ascendis Pharma, which is developing long-acting treatments for growth hormone deficiency, announced terms for its IPO on Friday. The Hellerup, Denmark-based company plans to raise $85 million by offering 5 million shares at a price range of $16 to $18. At the midpoint of the proposed range, Ascendis Pharma would command a market value of $373 million.

Ascendis Pharma's lead candidate is a once-weekly therapy for the orphan disease growth hormone deficiency (GHD). It has also established multi-product collaborations (preclinical) aimed at reducing the frequency of Sanofi's diabetes drugs and Genentech's Lucentis treatment for wet AMD. Ascendis Pharma's close peer Versartis (VSAR) raised $126 million in its March 2014 IPO and gained 49% on the first day, but now trades 9% below the offer price.

Ascendis Pharma, which was founded in 2006 and booked $21 million in sales for the 12 months ended September 30, 2014, plans to list on the NASDAQ under the symbol ASND. BofA Merrill Lynch, Leerink Partners and Wells Fargo Securities are the joint bookrunners on the deal. It is expected to price during the week of January 26, 2015.