Year's fourth eye-focused biotech EyeGate Pharmaceuticals sets terms for $25 million IPO

EyeGate Pharmaceuticals, a late-stage biotech developing a treatment for eye inflammation, announced terms for its IPO on Friday. The Waltham, MA-based company plans to raise $25 million by offering 2.0 million shares at a price range of $12 to $14. Insiders plan to purchase $2.5 million on the deal (10%). At the midpoint of the proposed range, EyeGate would command a fully diluted market value of $101 million.

A combination device/drug of an existing treatment
EyeGate recently completed a Phase 3 trial for its only product, a combined inflammation treatment and novel delivery system. The company expects to complete a confirmatory Phase 3 trial for its lead indication, non-infectious anterior uveitis, in the 1H16 and launch its drug and device in 2017. The company is also in  The delivery system uses a reformulated version of an approved drug, meaning the company can rely on existing studies to support its NDA. EyeGate's product is designed to improve compliance and safety in a market currently dominated by Novartis' Durezol, Valeant's Lotemax and Allergan's Pred Forte treatments. EyeGate is also in clinical trials to treat dry eye.

2014 eye-biotech IPOs
Three eye-related biotechs have gone public in July, and all trade above their IPO price. Close peer Ocular Therapeutix (OCUL) priced below the range and is up 26% as of September 12. Pfenex (PFNX) has gained 17% but only after slashing its IPO price by about half. After a rally on Friday, early-stage gene therapy biotech Avalanche Biotechnologies (AAVL) became the year's third best-performing biotech, up 112% from its IPO price.

EyeGate is primarily owned by three Paris-based venture firms; Ventech (33% pre-IPO stake), Innoven Partners (15%) and Natixis (9%). CEO Stephen From holds a 4% stake.

EyeGate Pharmaceuticals, which was founded in 2004, plans to list on the NASDAQ under the symbol EYEG. Aegis Capital is the sole bookrunner on the deal.