Evelo Announces Potential Pricing for IPO

By Chris Lange Updated Jan 12, 12:17AM EST · Published Apr 30, 10:20AM EDT

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Evelo Announces Potential Pricing for IPO — © Thinkstock

Evelo Biosciences has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company expects to price its 5.31 million shares in the range of $15 to $17 a piece, with an overallotment option of 796,875. At the maximum price, the entire offering is valued up to $103.86 million. The company intends to list its shares on the Nasdaq under the symbol EVLO.

The underwriters for the offering are Morgan Stanley, Cowen, BMO and JMP Securities.

This company is discovering and developing potential therapies designed to act on the gut-body network. The action of its therapies is based on growing understanding of the central role of the gut in controlling immune and biological activity throughout the body.

The gut-body network represents the connections of the gut to all organs and tissues, which enables the gut to exert a significant level of control over the body’s immune and biological systems. The centrality of the gut-body network to the immune system has only recently become appreciated, and modern medicine and drug discovery have largely overlooked the importance of the gut-body network in fighting disease.

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Evelo believes that it has the potential to use the unexplored biology of the gut-body network to develop novel therapies that could transform the treatment of many major diseases, potentially driving profound benefits to patients and society.

This firm has built a proprietary platform designed to develop monoclonal microbials as therapeutics. Its platform integrates tools and capabilities necessary to source, select, develop and manufacture monoclonal microbials as therapies. The efficiency of the platform has, in a relatively short time, allowed management to produce three product candidates for a range of inflammatory diseases and cancer that are advancing into clinical trials in 2018, beginning with a trial of EDP1066.

Evelo has a detailed plan of how the company plans to use the proceeds from this filing:

About $45.0 million to $50.0 million to fund proof of concept clinical trials in our inflammatory diseases programs.
Roughly $25.0 million to $35.0 million to fund proof of concept clinical trials in our oncology programs.
Around $35.0 million to $45.0 million to invest in our platform and to advance additional preclinical development activities.

The remainder will fund working capital, capital expenditures 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.