IPO Report: Aldeyra Therapeutics (ALDX)

Francis Gaskins  |

Aldeyra Therapeutics ($ALDX) is a biotechnology company focused primarily on the development of products to treat immune-mediated, inflammatory, orphan, and other diseases that are thought to be related to a naturally occurring toxic chemical species. It is headquartered in Burlington, MA.

Twelve other companies are scheduled for the week of April 7, 2014. The full IPO calendar is available at IPOpremium.

The manager is Aegis Capital. There are no co-managers.

ALDX scheduled a $25 million IPO with a market capitalization of $69 million at a price range midpoint of $11 for Friday, April 11, 2014 on the Nasdaq. SEC Filings


ALDX is a biotechnology company focused primarily on the development of products to treat immune-mediated, inflammatory, orphan, and other diseases that are thought to be related to a naturally occurring toxic chemical species known as free aldehydes.



Valuation Ratios


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Percent offered


Cap (mm)





in IPO

Aldeyra Therapeutics (ALDX)






37 percent



No collaboration partners.

ALDX's business is dependent in large part on the success of a single product candidate, NS2, which has not entered a clinical trial to demonstrate efficacy in humans.

The rating is neutral to negative.


ALDX is a biotechnology company focused primarily on the development of products to treat immune-mediated, inflammatory, orphan, and other diseases that are thought to be related to a naturally occurring toxic chemical species known as free aldehydes.

ALDX discovered and is developing NS2, a product candidate that is designed to trap and allow for disposal of free aldehydes, for the treatment of the following diseases: Sjögren-Larsson Syndrome (SLS), a rare disease caused by mutations in an enzyme that metabolizes fatty aldehydes; discoid lupus, an autoimmune condition that affects skin; acute anterior uveitis, an inflammatory eye disease; and ocular rosacea with meibomian gland dysfunction, a dry eye disease associated with rosacea, an inflammatory dermal condition.

ALDX believes there is significant unmet medical need for the therapies it intends to develop. ALDX is not aware of any therapy that has been approved by the United States Food and Drug Administration, or the FDA, for SLS or ocular rosacea with meibomian gland dysfunction.

ALDX believes that therapies for discoid lupus are moderately to poorly effective in controlling or curing the disease without drug related toxicity. Acute anterior uveitis is often treated with corticosteroids (commonly used anti-inflammatory agents), but prolonged use of corticosteroids can lead to significant morbidity.

In addition, SLS, discoid lupus, and acute anterior uveitis are rare conditions. ALDX intends to request orphan drug designation from the FDA for the drugs that ALDX is developing to treat rare diseases.

NS2 has been tested in a variety of in vitro and preclinical models, and has demonstrated the ability to trap free aldehydes, diminish inflammation, reduce healing time, protect key cellular constituents from aldehyde damage, and lower the potential for scarring or fibrosis.

Animal studies

NS2 has been tested in a variety of toxicity studies in animals and appears to be generally safe and well tolerated. ALDX are also developing aldehyde traps distinct from NS2 that have the potential to treat diseases other than those described above.

Clinical trials

ALDX has evaluated NS2 in a Phase I clinical trial in 48 healthy volunteers where NS2 was observed to be safe and well tolerated when administered as an eye drop up to four times per day over seven days.

In 2014, ALDX plans to initiate the following clinical trials, the data from all of which are expected to be available in the second half of 2015:

            Phase II clinical trials with ALDX’s NS2 eye drop in acute anterior uveitis and in ocular rosacea with meibomian gland dysfunction;

            Phase II/III clinical trial in SLS with a topical dermatologic formulation of NS2;

            Phase II clinical trial in discoid lupus with a topical dermatologic formulation of NS2; and

            Phase I clinical trial of NS2 administered orally to healthy volunteers.

Dividend Policy

No dividends are planned.

Intellectual Property

ALDX’s patent portfolio currently includes patents and patent applications covering the composition, formulation, and uses of NS2, and the compositions and uses of other novel aldehyde trapping compounds.

As of January 9, 2014, ALDX owned one United States patent, four United States non-provisional patent applications, and five provisional patent applications, as well as numerous foreign counterparts to these patents and patent applications.


Novartis International A.G. (pimecrolimus), Amgen, Inc. (AMG 811), Astion Pharma A/S (ASF-1096), Celgene Corporation (CC-11050), and Basilea Pharmaceutica (alitretinoin) have conducted or are conducting clinical trials in discoid lupus.

Novartis (ESBA105) and EyeGate Pharmaceuticals, Inc. (EGP-437) have conducted or are conducting clinical trials in anterior uveitis. For the diseases ALDX intends to study, there may be other developmental therapies of which ALDX is not aware.

A myriad of new treatments have been or are being developed to treat inflammatory diseases, and, in theory, could be used for the treatment of the diseases ALDX’s products are intended to target. Immune-modulating products include cytokine inhibitors, immune cell receptor inhibitors, and Janus kinase inhibitors.

Companies that currently market such therapies include Abbvie, Inc., Johnson & Johnson, UCB Inc. and UCB S.A., Amgen, Inc., Bristol-Myers Squibb Co., and Pfizer, Inc,

5% stockholders

Funds affiliated with Domain Associates, L.L.C .      50.1 percent

Johnson & Johnson Development Corporation         44.5 percent  

Use of proceeds

ALDX expects to net $19.1 million from its IPO. Proceeds are allocated as follows:

$10 million for research and development activities for NS2, including ALDX’s currently planned clinical trials of NS2 and development of other molecules that may relate to ALDX’s aldehyde trapping platform, and the remainder for working capital and other general corporate purposes.

ALDX believes that its anticipated research and development expenditures will be sufficient to complete the five clinical trials described in the prospectus, and ALDX believes that each clinical trial will require between $1 million to $2 million to complete.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Symbol Name Price Change % Volume
ALDX Aldeyra Therapeutics Inc. 8.90 0.16 1.83 198,024 Trade
SBKO Summit Bank Or 16.20 0.20 1.25 200



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