EyeGate Pharmaceuticals postpones $25 million IPO

EyeGate Pharmaceuticals, a late-stage biotech developing a treatment for eye inflammation, postponed its IPO on Thursday. It had planned to raise $25 million on Thursday night at a fully diluted market cap of $101 million by offering 2.0 million shares at a range of $12 to $14 per share, where insiders would purchase 10% of the IPO. The recent selloff in growth stocks may have been a deciding factor.

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 delivery system uses a reformulated version of an approved drug, which often spurs litigation. 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.

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 8% as of October 2. Pfenex (PFNX) has gained 20% but only after slashing its IPO price by about half. Early-stage gene therapy biotech Avalanche Biotechnologies (AAVL) is the quarter's best-performing biotech, up over 100% from its IPO price.

An eye-focused medical device maker, Second Sight (EYES), amended its filing on Thursday and could launch a small IPO later this quarter.

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

EyeGate Pharmaceuticals, which was founded in 2004, had planned to list on the NASDAQ under the symbol EYEG. Aegis Capital was set to be the sole bookrunner on the deal.