IPO Report: CoLucid Pharmaceuticals (CLCD)

Francis Gaskins  |

CoLucid Pharmaceuticals (CLCD) is a Phase 3 clinical-stage biopharmaceutical company that is developing an innovative and proprietary small molecule for the acute treatment of migraine headaches. 

Four other companies are scheduled for the week of April 27. The full IPO calendar is available at IPO Premium.

CLCD is based in Burlington, MA andscheduled a $75 million IPO on Nasdaq. The market capitalization is $210 million at a price range midpoint of $14. The IPO is scheduled for Thursday, April 30, 2015.

The manager and joint-managers are Piper Jaffray, Stifel. The co-managers is William Blair. 

SEC filings

CoLucid Pharmaceuticals Valuation


Affiliates of shareholders indicate an interest in buying $22.5mm of the IPO, or 30% of the IPO.

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Valuation Ratios

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% offered in IPO

CoLucid Pharmaceuticals (CLCD)


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CoLucid Pharmaceuticals Conclusion


Small molecule treatment of migraine headaches

Shareholders may purchase 30% of the IPO

Price-to-bk is 2, relatively low

P/E is -71, indicating low cash burn rate relative  to market cap

Top line data from Phase 3 clinical trial expected Q3 '16

CoLucid Pharmaceuticals Business

CLCD is a Phase 3 clinical-stage biopharmaceutical company that is developing an innovative and proprietary small molecule for the acute treatment of migraine headaches.

CLCD’s product candidates utilize the first new mechanism of action in the last twenty years, which CLCD believes could address the unmet needs of migraine patients, including those with cardiovascular risk factors or stable cardiovascular disease and those who are dissatisfied with existing therapies.

CoLucid Pharmaceuticals License Agreement

On February 10, 2015, CLCD entered into an amended and restated development and license agreement with Eli Lilly (LLY), $77 billion market cap, which consolidated a number of amendments to the original development and license agreement with Eli Lilly dated December 16, 2005.

Pursuant to such agreement, CLCD holds a worldwide license, with the right to grant sublicenses, under certain patents and know-how owned or controlled by Eli Lilly for lasmiditan for all human health purposes.

The license is exclusive except that Eli Lilly has retained the right to conduct research on lasmiditan and products containing lasmiditan for internal research purposes only.

The term of the agreement will expire on a country-by-country basis upon expiration of royalty obligations in such country, which occurs on the later of the tenth anniversary of the first commercial sale in such country or the expiration of the last-to-expire licensed patent in such country.

Upon expiration of royalty payment provisions in a given country, CLCD will have a fully paid up, perpetual, irrevocable know-how license in such country, unless the agreement is terminated earlier.

CoLucid Pharmaceuticals Lead Product

Lasmiditan, CLCD’s lead product candidate, is an oral tablet for the acute treatment of migraine headaches in adults that does not have the clinical limitations associated with the most commonly used therapies.

In its Phase 2b clinical trial of lasmiditan, CLCD met its primary endpoint of headache relief with statistical significance as well as its secondary endpoint of freedom from the associated symptoms of nausea, sensitivity to sound and sensitivity to light.

Headache relief is defined as reducing a moderate or severe headache at baseline to mild or none two hours after dosing. In CLCD’s completed clinical trials, lasmiditan was well tolerated and had a favorable patient global impression of change, an indicator of patient satisfaction.

CoLucid Pharmaceuticals Phase 3 Trials

CLCD is conducting its first pivotal Phase 3 randomized, double-blind, placebo-controlled clinical trial of lasmiditan, or SAMURAI, under a special protocol assessment, or SPA, agreement with the U.S. Food and Drug Administration, or FDA, with top-line data expected in the third quarter of 2016.

CLCD also plans to initiate a second pivotal Phase 3 clinical trial of lasmitidan in the first half of 2016.

If CLCD successfully completes its two pivotal Phase 3 clinical trials of lasmiditan, CLCD expects to submit a new drug application, or NDA, to the FDA seeking marketing approval for lasmiditan in the United States with a product label that is differentiated from triptans.

Triptan product labels include warnings and precautions against use in patients with cardiovascular risk factors or disease and triptans are not indicated to provide freedom from the most bothersome associated symptom. CLCD is also developing intravenous lasmiditan, or IV lasmiditan, for the acute treatment of unspecified headache pain in adults in emergency room and other urgent care settings.

CLCD owns or has exclusive rights to the intellectual property for lasmiditan and IV lasmiditan, including composition of matter protection.

CLCD has commercial exclusivity for lasmiditan and IV lasmiditan in the United States until 2025, which CLCD expects will be extended up to five years to 2030 by obtaining a term extension under the provisions of the Hatch-Waxman Act.

CoLucid Pharmaceuticals Intellectual Property

CLCD owns or has exclusive rights to a significant patent portfolio related to the manufacture, sale and use of lasmiditan and IV lasmiditan.

One portion of CLCD’s portfolio is in-licensed from Eli Lilly and Company, or Eli Lilly, and the other portion is owned by CLCD, through work-for-hire and through the activities of CLCD’s employee inventors.

CoLucid Pharmaceuticals Competition

CLCD believes lasmiditan is the only NCE in active clinical development for the acute treatment of migraine.

Products that are currently used for the acute treatment of migraine and headache pain include the following:

This drug class is the current standard of care for the acute treatment of migraine, which includes sumatriptan, zolmitriptan, rizatriptan, naratriptan, eletriptan, and frovatriptan and the entire class will be generic by the time CLCD expects to launch lasmiditan.

Additional formulations of sumatriptan and rizatriptan are in development and, if approved, are expected to compete for market share as branded generic products by the time CLCD has launched the commercialization of lasmiditan.

The most advanced formulations include Teva’s Zecuity, Avanir’s AVP-825, and RedHill/IntelGenx’s oral thin film formulation of rizatriptan.

Teva’s Zecuity is a transdermal iontophoretic sumatriptan patch. Avanir’s AVP-825 is a fast acting dry powder nasal delivery formulation of sumatriptan, which is expected to launch during 2015. RedHill/IntelGenx’s oral thin film formulation of rizatriptan for the acute treatment of migraines is currently under review by the FDA.

All of these products are expected to have precautions and warnings for patients with cardiovascular risk factors or disease.

The ergotamine drug class has largely been replaced by the triptans.

However, an orally inhaled formulation of this drug is currently under development and may be a potential competitor as a branded generic product called Semprana, under development by Actavis, and is expected to launch during the first half of 2016. This drug class is also associated with contraindications, precautions and warnings with cardiovascular risk factors or disease.

These agents are generally used for less severe migraine attacks and are available as over-the-counter medications, as well as by prescription.

Opioids, Barbiturates and Combination Products.   
These products are mainly used for rescue therapy or treatment in emergency rooms and other urgent care settings, but have not been approved for the acute treatment of migraine.

CoLucid Pharmaceuticals 5% Shareholders Pre-IPO

Care Capital Investments III, LP, 47 Hulfish Street, Princeton, NJ 08542    16.03%

Novo A/S, Tuborg Havnevej 19, 2900 Hellerup, Denmark             18.22%

Domain Partners VI, L.P., One Palmer Square, Princeton, NJ 08542         23.34%

A. M. Pappas Life Science Ventures III, L.P., 2520 Meridian Parkway, Durham, NC  17.51%                       TVM Life Science Ventures VII L.P., 2 Place Alexis Nihon, Suite 902, 3500 Blvd De Maisonneuve West, Westmount, Quebec H3Z 3C1, Canada             10.33%

Triathlon Medical Ventures Fund, L.P., 300 East Business Way, Suite 200, Cincinnati, OH 7%

Martin Edwards, M.D., M.B.A.    18.22%

Luc Marengere, Ph.D.    10.33%

Richard J. Markham       16.03%

Arthur M. Pappas          17.51%

Jesse I. Treu, Ph.D.       23.34%                        

CoLucid Pharmaceuticals Dividends

No dividends are planned.

CoLucid Pharmaceuticals Use of Proceeds

CLCD expects to receive $68 million from its IPO and use it for the following:

$56.4 million to fund its clinical trials of lasmiditan and to fund development of lasmiditan; and the remainder for working capital, general and administrative expenses and other general corporate purposes.

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Symbol Name Price Change % Volume
CLCD CoLucid Pharmaceuticals Inc. n/a n/a n/a 0 Trade


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