Zosano Pharma increases proposed IPO deal size by 43%; now expected to raise $47 million

Zosano Pharma, which is developing a transdermal formulation of an approved osteoporosis treatment, increased the proposed deal size for its upcoming IPO on Monday.

The Fremont, CA-based company now plans to raise $47 million by offering 4.3 million shares at a price range of $10 to $12, up from 3.0 million shares at the same range. At the midpoint, Zosano Pharma will raise 43% more in proceeds than previously anticipated and command a fully diluted market value of $133 million, a 12% increase.

Of note, Zosano first filed to raise $70 million at a $139 million market cap in July 2014, but postponed the offering. The biotech may receive more interest this time around based on the performance of close peer Radius Health (RDUS) and Zosano's new partnership with Eli Lilly (LLY).

Zosano Pharma, which was founded in 2007 and booked $3 million in sales for the 12 months ended September 30, 2014, plans to list on the NASDAQ under the symbol ZSAN. Ladenburg Thalmann and Roth Capital are the joint bookrunners on the deal. It is expected to price during the week of January 26, 2015.