IPO Report: Dimension Therapeutics (DMTX)

Francis Gaskins |

Dimension Therapeutics IPO, Dimension Therapeutics IPO date, Dimension Therapeutics IPO price, stocks to buy now, IPOs this week, small-cap stocksDimension Therapeutics (DMTX) is a leading gene therapy platform company focused on discovering and developing new therapeutic products for people living with rare diseases associated with the liver and caused by genetic mutations. The company is based in Cambridge, MA.

Two other companies are scheduled to IPO for the week of Oct. 19. The full IPO calendar is available at IPO Premium.

SEC Documents

Manager, Joint-managers: Goldman Sachs, Citigroup, Wells Fargo Securities

Co-managers: Canaccord Genuity, Cantor Fitzgerald

End of lockup (180 days): Tuesday, April 19, 2016

End of 10-day quiet period: Sunday, November 1, 2015

DMTX scheduled an $83 million IPO with a market capitalization of $373 million at a price range midpoint of $15 for Thursday, October 22, 2015 on Nasdaq.

Dimension Therapeutics (DMTX) IPO Summary

DMTX is a leading gene therapy platform company focused on discovering and developing new therapeutic products for people living with rare diseases associated with the liver and caused by genetic mutations.

DMTX’s initial programs address hemophilia B, hemophilia A, ornithine transcarbamylase, or OTC, deficiency, and glycogen storage disease type Ia, or GSDIa.

Dimension Therapeutics (DMTX) Valuation

Glossary

Accumulated deficit (mm)

.

.

-$31

     

Per share dilution

.

.

-$9.64

     
             

Valuation Ratios

Mrkt Cap (mm)

Price /Sls

Price /Erngs

Price /BkVlue

Price /TanBV

% offered in IPO

Dimension Therapeutics (DMTX)

$374

56.6

-12.0

2.8

2.8

22%

annualizing June 6 mos

       
             
             
             
             

Dimension Therapeutics (DMTX) IPO Conclusion

Neutral

Will proceed with Phase 1/2 clinical trial

Granted Orphan Drug Designation in the United States in August 2015

Fast Track Designation in September 2015

Price to book of 2.8

P/E of -12 indicating moderate cash burn relative to market cap for a gene therapy platform co

Stockholders may purchase $35mm, 42%

Collaborates with Bayer (BAYN), $91bb market cap

Dimension Therapeutics (DMTX) Business

DMTX is a leading gene therapy platform company focused on discovering and developing new therapeutic products for people living with rare diseases associated with the liver and caused by genetic mutations.

DMTX’s initial programs address hemophilia B, hemophilia A, ornithine transcarbamylase, or OTC, deficiency, and glycogen storage disease type Ia, or GSDIa.

In August 2015, DMTX submitted an Investigational New Drug application, or IND, with the U.S. Food and Drug Administration, or FDA, for its lead product candidate, DTX101 for the treatment of hemophilia B.

FDA Milestones

In September 2015, DMTX received notification allowing it to proceed with its Phase I/II clinical trial of DTX101.

DTX101 was also granted Orphan Drug Designation in the United States in August 2015 and

Fast Track Designation in September 2015 for the treatment of hemophilia B.

Bayer Collaboration

In June 2014, DMTX entered into a research and development collaboration and license agreement with Bayer for the development and commercialization of a gene therapy for the treatment of hemophilia A.

Under the terms of the agreement with Bayer, DMTX received a nonrefundable, noncreditable upfront license payment of $20.0 million in June 2014 and is eligible to receive development and commercialization milestone payments of up to $232.0 million, as well as tiered royalty payments ranging in the high single-digit to low double-digit percentages, not exceeding the mid teens, of net sales of commercialized products resulting from the collaboration, as defined in the agreement with Bayer.

Bayer will fund certain research and development services performed by us during the research term and will reimburse DMTX for all project costs, including any third-party costs, in the performance of obligations under the annual research plan and in accordance with the mutually agreed upon research budget.

Dimension Therapeutics (DMTX) Financing History

Inception in June 2013 through June 30, 2015, had received net proceeds of $88.8 million from sales of preferred stock, $27.2 million under a collaboration agreement with Bayer, and $1.8 million from borrowings under a loan and security agreement.

Dimension Therapeutics (DMTX) Clinical Trials

DMTX plans to initiate clinical trials for DTX101 by the end of 2015. DMTX retains the global rights to all of its programs, with the exception of its hemophilia A program, which is partnered with Bayer HealthCare LLC, or Bayer.

The liver is a vital organ that plays an important role in human metabolism and other key physiologic functions. Over 400 described rare monogenic disorders are associated with the liver, many of which have severe or even fatal consequences for patients, and collectively represent a significant unmet medical need.

DMTX’s product candidates are focused on a subset of these monogenic diseases that DMTX believes are particularly well-suited to its gene therapy platform and are designed to achieve sustained efficacy with low toxicity.

DMTX has developed a robust scientific platform that brings together deep expertise in rare genetic diseases, liver biology, adeno-associated virus, or AAV, gene therapy and vector manufacturing. DMTX believes that by leveraging the expertise created by its platform DMTX will be able to accelerate the research and development of its pipeline of programs while continuing to discover and develop the next generation of products in this field.

DMTX’s gene therapy product candidates and programs are designed to provide a functional copy of an abnormal or missing gene using the most advanced AAV-based vector delivery technology, which has been optimized to potentially offer durable clinical benefit to patients while minimizing risk.

DMTX has selected its gene therapy vectors to take advantage of the unique anatomic properties of the liver to maximize clinical benefit with simple peripheral intravenous infusion. AAV vectors have been studied in over 120 clinical trials that suggest an initial favorable safety profile with early signals of efficacy.

DMTX has made and continue to make significant investments in order to develop manufacturing processes designed to reliably produce higher purity AAV vectors at commercial scale with a greater percentage of AAV capsids containing a therapeutic vector genome than other manufacturing approaches.

DMTX believes that its manufacturing processes, methods and expertise will ultimately give DMTX the most comprehensive manufacturing platform developed to date for AAV-based gene therapy product candidates.

Dimension Therapeutics (DMTX) Intellectual Property

DMTX has in-licensed patents and patent applications owned by the University of Pennsylvania relating to various adeno-associated viruses and vectors utilizing the capsids of those viruses.

These patents and patent applications are licensed or sublicensed to ReGenX and sublicensed by ReGenX to us. DMTX’s  sublicense is exclusive, but limited to particular fields, such as hemophilia B, hemophilia A, OTC deficiency, and GSDIa and is subject to certain retained rights.

DMTX does not control the prosecution of its in-licensed patents and patent applications, and its rights to enforce the patents are limited in certain ways.

 As of June 30, 2015, DMTX’s in-licensed patent rights relating to its product candidates included the following:

DTX101:    DMTX’s product candidate DTX101 utilizes an AAVrh10 capsid and a codon-optimized FIX gene. DMTX has in-licensed one pending U.S. patent application currently directed to recombinant AAV having an AAVrh10 capsid. Related patents have granted in Australia and Europe and related patent applications are pending in other countries. These patents and patent applications, if granted, will expire in 2022.

DTX301:    DMTX expects that its product candidate DTX301 will utilize one of the patented AAV capsids DMTX has in-licensed and contain a codon-optimized version of the OTC gene. Accordingly, depending on which capsid DMTX utilizes in DTX301, relevant in-licensed patents and patent applications, if granted, may expire in 2022.

DMTX’s in-license also includes a patent application filed this year under the Patent Cooperation Treaty, directed to the codon-optimized version of the OTC gene that DMTX plans to use in DTX301. If counterparts of this patent application in the U.S. or elsewhere are pursued, and to the extent any such applications ultimately issue as patents, they will expire in 2035.

DTX401:    DMTX expects that its product candidate DTX401 will utilize one of the AAV capsids that are claimed in the patents and applications DMTX has in-licensed and contain a version of the G6Pase gene. Accordingly, depending on which capsid DMTX utilizes in DTX401, relevant in-licensed patents and patent applications, if granted, may expire between 2022 and 2024.

DTX201:    DMTX’s product candidate DTX201 will utilize one of the AAV capsids that are claimed in the patents and applications DMTX has in-licensed and contain a B domain deleted Factor VIII gene. These patents and patent applications, if granted, will expire between 2022 and 2024.

Dimension Therapeutics (DMTX) Competition

The main competitors for DMTX’s specific programs are as follows:

DTX101: Baxalta Incorporated, Novo Nordisk S/A, uniQure in collaboration with Chiesi Farmaceutici S.p.A., Spark Therapeutics, Inc. in collaboration with Pfizer, Inc., Sangamo BioSciences, Inc., Alnylam Incorporated and Telethon Institute for Gene Therapy in collaboration with Biogen Inc.

DTX301: Arcturus Therapeutics Inc., Bioblast Pharma Ltd., PhaseRx, Inc. and Synlogic, Inc.

DTX401: new medical food products and longer-acting corn starch formulations.

DTX201: Baxalta Incorporated, BioMarin Pharmaceutical Inc., uniQure, Spark Therapeutics, Inc., Pfizer, Inc., Sangamo Biosciences, Inc., Telethon Institute for Gene Therapy in collaboration with Biogen Inc., Alnylam Incorporated, Novo Nordisk S/A and Roche Holding AG.

Dimension Therapeutics (DMTX) 5% shareholders pre-IPO

Entities affiliated with Beacon Bioventures Fund             36.1%

OrbiMed Private Investments V, L.P.  26.8%

Entities affiliated with New Leaf Venture Partners, L.L.C.             5.7%

Benjamin Auspitz           36.1%

Dimension Therapeutics (DMTX) Dividends

No dividends are planned.

Dimension Therapeutics (DMTX) IPO Use of Proceeds

DMTX expects to receive $74 million from its IPO and use it for the following:

$22 million to advance DTX101 as a treatment for hemophilia B through a Phase I/II clinical trial;

$22 million to advance DTX301 as a treatment for OTC deficiency through IND-enabling studies and into a Phase I/II clinical trial;

$12 million to advance DTX401 as a treatment for GSDIa through IND-enabling studies and into a Phase I/II clinical trial;

$9 million to expand its internal process development capabilities;

$5 million to continue to advance and to expand its research and development pipeline of its product candidates and other indications; and

use the remainder for working capital and other general corporate purposes, which will include funding for the hiring of additional personnel, capital expenditures and the costs of operating as a public company.

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

Companies

Symbol Name Price Change % Volume
DMTX Dimension Therapeutics Inc. 4.20 0.00 0.00 24,812

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