Tuesday, January 31, 2012

Cempra Pharmaceuticals Set for IPO

Partial content from WRAL Techwire

Cempra Pharmaceuticals is set for their initial public offering (IPO) later this week.

CempraCempra’s two lead drug candidates are antibiotics that would address drug-resistant bacteria. Cempra is targeting an antibiotics market Datamonitor estimates was $19.6 billion in the United States, Japan and the five major European markets in 2009.

Proceeds from the Cempra IPO will finance late-stage clinical trials on two antibiotic candidates targeting drug-resistant bacteria. The antibiotic treatment CEM-101, also called solithromycin, is ready to enter phase 3 clinical trials as a pneumonia treatment. The drug may also have applications in Legionnaires’ disease and sexually transmitted diseases such as syphilis. Cempra reported positive phase 2 clinical trial results for the antibiotic last September, just prior to the firm’s October IPO filing.

A second candidate called Taksta has finished phase 2 clinical trials and would be studied in phase 3 as a treatment for skin infections, including MRSA (Methicillin-resistant Staphylococcus). Cempra earlier this month updated its filings, setting a price range of $11 to $13 per share for the IPO.