Dova Pharmaceuticals Files to Raise $75M in IPO

6/9/17

By Chris Roush, NC BIZ News

A Durham-based biotechnology company has filed to raise nearly $75 million in an initial public offering, according to a Securities and Exchange Commission filing on Friday.

Dova Pharmaceuticals Inc. hopes to use the money from the IPO to fund trials and the approval of its first drug.

The Form S-1 did not list a proposed stock price range for the company. Dova’s stock, if the IPO is successful, would trade on the Nasdaq using the ticker DOVA.

The company was formed in March 2016 and has produced no revenue. It posted a loss of $27.2 million in 2016 and a loss of $5.4 million in the first three months of 2017.

Dova Pharmaceuticals, which has just four employees, is developing treatments for patients suffering from orphan diseases. As of March 31, it had $26.6 million in cash.

The company’s lead investigational drug, avatrombopag, is in the process of completing two Phase 3 clinical trials researching its use as a potential treatment for thrombocytopenia in patients with chronic liver disease.

The drug has not been approved by the Food and Drug Administration or other regulatory authorities for any use. The company said in the filing it plans to file a new drug application in the third quarter of this year.

If the company is successful in obtaining FDA approval for avatrombopag, it owes Astellas royalty fees based on the drug’s sales.

The CEO of the company is Alex Sapir, who joined the company in January. His base salary is $400,000.

From January 2006 to May 2016, Sapir served as executive vice president, marketing and sales for United Therapeutics Corp., a biotechnology company focused on the development and commercialization of unique products to address the unmet medical needs of patients with chronic and life-threatening conditions.

From January 2003 to January 2005, Sapir served as senior director, marketing for Guilford Pharmaceuticals. He began his career at GlaxoSmithKline serving in various commercial roles in the United States and Europe.

PBM Capital is the company’s largest investor, with 5.3 million shares, or 84.8 percent of the outstanding stock. Sapir owns 277,000 shares, or 4.3 percent.

Underwriters for the offering are J.P. Morgan LLC, Jefferies LLC and Leerink Partners LLC.

The company’s website lists a Charlottesville, Virginia, mailing address, but the SEC filing for the IPO lists an address in Durham used by other startup companies.

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