IPO Report: Innocoll GmbH (INNL)

Francis Gaskins  |

Innocoll GmbH ($INNL) is a global, commercial stage, specialty pharmaceutical company, with late stage development programs targeting areas of significant unmet medical need. It is headquartered in Athlone, Ireland,

Ten other companies are scheduled for the week of July 21, 2014. The full IPO calendar is available at IPOpremium.

The manager co-managers are Piper Jaffray and Stifel. The joint managers is JMP Securities.

INNL scheduled a $75 million IPO with a market capitalization of $149 million at a price range midpoint of $14 for Friday, July 25, 2014 on the Nasdaq. SEC filings

Innocoll GmbH IPO Report


INNL is a global, commercial stage, specialty pharmaceutical company, with late stage development programs targeting areas of significant unmet medical need.

INNL’s lead product candidates are XaraColl​® for the treatment of post-operative pain and Cogenzia​® for the treatment of diabetic foot infections.

Funds affiliated with Sofinnova Ventures, Inc., have indicated an interest in purchasing up to $15.0 million of INNL's ADSs at the initial public offering price. Also, certain existing shareholders, including certain of supervisory board members, have indicated an interest in purchasing up to $12.0 million of the ADSs at the initial public offering price.

$27 million represents 36% of the IPO size, which is a positive.

INNL expects to sell 51% of itself on its IPO. 51% is a relatively large percentage and is a negative.

Also, the price-to-earnings is -5.6, which indicates a high cash burn rate relative to the market cap.



Valuation Ratios

Mrkt Cap (mm)

Price /Sls

Price /Erngs

Price /BkVlue

Price /TanBV

% offered in IPO

Annualizing Q1 '14


Innocoll GmbH (INNL)









The rating on INNL is neutral.


INNL is a global, commercial stage, specialty pharmaceutical company, with late stage development programs targeting areas of significant unmet medical need.

INNL’s lead product candidates are XaraColl​® for the treatment of post-operative pain and Cogenzia​® for the treatment of diabetic foot infections.

INNL plans to initiate Phase 3 trials for XaraColl and Cogenzia in the second half of 2014 with pivotal data for each expected in late 2015.

CollaGUARD, for prevention of post-surgical adhesions, has been approved in 45 countries in Europe, Asia, and emerging markets during the last 12 months and INNL will commence the pivotal trial required for approval in the United States in the first quarter of 2015.

In 2013, INNL generated €3.5 million of sales from three marketed products: CollaGUARD, and two gentamicin implants for the prevention of post-operative infections, CollatampG, and Septocoll. INNL utilizes its proprietary collagen-based technology platform to develop its biodegradable and bioresorbable products and product candidates.

INNL manufactures its products in its own commercial scale facility.

INNL has strategic partnerships in place with large international healthcare companies, such as Takeda (TKPYY) , Jazz Pharmaceuticals (JAZZ) , and Biomet which market certain of its approved products in Europe, Asia, the Middle East, Canada, Australia, and Latin America. INNL’s corporate headquarters are located in Athlone, Ireland.

Lead product candidate and market size

INNL’s first lead product candidate, XaraColl, is an implantable, bioresorbable collagen sponge that INNL designed to provide sustained post-operative pain relief through controlled delivery of bupivacaine at the surgical site.

The worldwide post-operative pain market was estimated to be $5.9 billion in 2010.

INNL believes XaraColl can reduce the need to use opiates for post-operative pain

The current standard of care for the treatment of post-operative pain relies heavily on the use of opioids supplemented by other classes of pain medications, the combination of which is known as multi-modal pain therapy.

75% of patients receiving standard treatments still report inadequate post-operative pain relief and 79% of patients report adverse events from these medications.

Opioid-related adverse events, such as nausea, constipation and respiratory depression, which are potentially severe, may require additional medications or treatments and prolong a patient’s hospital stay, thereby increasing overall treatment costs significantly.

Additionally, opioids are highly addictive and induce drug resistance and tolerance.

Given the negative side effects and costs associated with opioid use in particular, there is increasing focus from hospitals, payors, and regulators on treatments that reduce opioid use in the treatment of post-operative pain.

INNL believes XaraColl addresses these concerns and is well positioned to become a cornerstone component of effective multi-modal treatment of post-operative pain.

Dividend Policy

No dividends are planned.

Intellectual Property

XaraColl. INNL has a primary patent intended to protect XaraColl in the United States, Europe, and Japan, entitled “A drug delivery device for providing local analgesia, local anesthesia or nerve blockade,” which has an application priority date of March 28, 2007, and in Ireland, which has an application priority date of September 29, 2011.

It covers products comprising any amino amide and/or amino ester anesthetic in a collagen matrix intended for the provision of local analgesia or anesthesia over about 24 hours or longer.

The United States Patent was issued on October 11, 2011 and expires May 21, 2029. The corresponding European application, published in January 2010, is in the examination phase and the Japanese patent was issued in September 2013.


INNL has filed patent applications in each of the United States, Europe, Canada, Australia and Japan specifically related to Cogenzia with a priority date of April 11, 2011.

These applications are entitled “Methods for treating bacterial infection” and cover the local treatment of bacterial infections with an aminogylcoside antibiotic dispersed in a collagen matrix when used in combination with systemic administration of other antibacterial agents.

If and when issued, INNL expects patent protection for Cogenzia in the United States and Europe to expire at the earliest in 2031.


INNL filed an initial European patent application entitled “A modified collagen” with priority date January 9, 2012, which is intended to cover a process for the improved properties of collagen membranes that may be produced using Innocoll’s CollaFilm technology.

In particular, the patent relates to improved mechanical and physiological properties for its CollaGUARD Adhesion Barrier, as well as providing other advantages for drug delivery.

The international PCT application was submitted on January 9, 2013. If and when issued, these patents are expected to expire in 2033 or later in the United States.

CollaPress Technology

INNL’s proprietary CollaPress technology is described in the issued European patent entitled “Novel collagen-based material with improved properties for use in human and veterinary medicine and the method of manufacturing such,” which expires on March 9, 2020.

It has been nationalized and maintained in 6 European countries: France, Germany, Italy, Spain, Sweden, and the United Kingdom.

The patent covers collagen membranes with improved mechanical and fluid-absorption properties which may be produced by thermal compression.

The technology patent is currently utilized in INNL’s ProColl™ wound management device and may also be used for the development of other proprietary, bioresorbable tissue reinforcement implants and/or as implantable delivery systems for biologically active substances such as hemostatic agents, growth factors, cytokines and drugs.


INNL’s competitors include organizations such as major multinational pharmaceutical companies, established biotechnology companies, specialty pharmaceutical companies and generic drug companies.

Many of INNL’s competitors have greater financial and other resources than INNL has, such as more commercial resources, larger research and development staffs, and more extensive marketing and manufacturing facilities and organizations.

Smaller or early-stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large, established companies.

INNL’s competitors may succeed in developing, acquiring or licensing on an exclusive basis technologies and products that are more effective or less costly than XaraColl,

Cogenzia, CollaGUARD, or any other products that INNL is currently selling through partners or developing or that INNL may develop, which could render its products obsolete and noncompetitive.

INNL expects any products that it develops and commercializes to compete on the basis of, among other things, efficacy, safety, convenience of administration and delivery, price and the availability of reimbursement from government and other third-party payers.

INNL also expects to face competition in its efforts to identify appropriate collaborators or partners to help commercialize its product candidates in its target commercial markets.

5% stockholders

Cam Investment Cayman Holdings L.P.  32.3%

Morgan Stanley & Co. LLC​  26.9%

NewSmith Opportunities Private Equity Fund L.P.  14.9%

Investment Partners, L.P.​  9.5%

Big Creek, L.P.​  6.7%

​Gordon Dunn 17.9%

Use of proceeds

INNL intends to use the $67 million in proceeds from its IPO as follows:

$15 million for the development of XaraColl;

$27 million for the development of Cogenzia;

$7 million for the development of CollaGUARD;

$10 million for expanding its manufacturing infrastructure; and

the remainder for general corporate purposes.


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
TCK.WT:PUR TCK.WT:PUR n/a n/a n/a 0



Symbol Last Price Change % Change










Can the Media Solve the Partisan Conflict?

Andrew McCarthy, Contributing Editor, The National Review; Michael Zeldin, CNN Legal Analyst; Celeste Katz, Senior Political Reporter, Glamour; Silvia Davi, SVP, Contributing Editor, Equities.com; and Doug Simon, CEO, D S Simon Media discuss how the media’s role has shaped the landscape for communicators and what the media is trying to do to reduce discord in society.

Emerging Growth

MGX Minerals Inc.

MGX Minerals is a diversified Canadian mining company listed on the Canadian Securities Exchange. MGX is engaged in the acquisition and development of industrial mineral deposits in western Canada that…