Menlo Therapeutics Closes in on IPO

By Chris Lange Updated Jan 12, 4:20AM EST · Published Jan 19, 10:25AM EST

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Menlo Therapeutics Closes in on IPO — © Thinkstock

Menlo Therapeutics has registered an amended S-1 filing with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company plans on pricing its 5.67 million shares in the range of $14 to $16, with an overallotment option for an additional 850,000 shares. At the maximum price, the entire offering is valued up to $104.27 million. The company intends to list its stock on the Nasdaq under the symbol MNLO.

The underwriters for the offering are Jefferies, Piper Jaffray, Guggenheim Securities and JMP Securities.

This late-stage biopharmaceutical company is focused on the development and commercialization of serlopitant for the treatment of pruritus, or itch, associated with dermatologic conditions such as atopic dermatitis, psoriasis and prurigo nodularis. The company is concurrently evaluating the use of serlopitant for the treatment of refractory chronic cough, a cough that persists for greater than eight weeks despite treatment of any identified underlying cause. Management believes that serlopitant has the potential to significantly alleviate pruritus and refractory chronic cough symptoms.

Menlo expects data from its ongoing Phase 2 clinical trial in pruritus associated with atopic dermatitis in the second quarter of 2018 and from its ongoing Phase 2 clinical trials in pruritus associated with psoriasis and refractory chronic cough by late 2018 or early 2019. Menlo plans to initiate two Phase 3 clinical trials in pruritus associated with prurigo nodularis in the first half of 2018, with results expected in the first half of 2020.

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If these or future trials are successful, the firm could potentially submit a new drug application (NDA) for up to three indications in 2020: pruritus associated with atopic dermatitis, psoriasis and prurigo nodularis.

According to the filing, Menlo intends to use the net proceeds from this offering for a few different objectives:

To complete our ongoing Phase 2 clinical trials of serlopitant for pruritus associated with atopic dermatitis and psoriasis, and for refractory chronic cough;

To significantly advance our planned Phase 3 development of serlopitant for pruritus associated with prurigo nodularis;

Development and manufacturing costs primarily associated with supplying serlopitant for our clinical trials, and development and validation of our commercial manufacturing process for serlopitant in preparation for our NDA and MAA submissions;

$3.0 million milestone payment to Merck associated with initiating a Phase 3 clinical trial;

The remainder for personnel expenses, other development activities, including potentially commencing Phase 3 clinical trials for pruritus associated with atopic dermatitis and psoriasis and for refractory chronic cough, working capital and other general corporate purposes.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.