Rib-X Pharmaceuticals postponed its IPO on Wednesday, the day after cutting its price by 50%. The biotech had been planning to raise $65 million by offering 10 million shares at a price range of $6 to $7. At the midpoint, Rib-X would have commanded a market value of $129 million. Deutsche Bank Securities was the sole bookrunner on the deal.
Another biotech, Merrimack Pharmaceuticals, postponed its IPO in early February but was able to complete its deal in late March thanks to insider buying by Sanofi, which also collaborates with Rib-X. Merrimack, however, had a larger pipeline and its lead candidate had already begun Phase 3 trials. FDA approval for Rib-X's lead candidate, delafloxacin, is not expected until 2015, pending successful Phase 3 trials.
