IPO Report: Juno Therapeutics (JUNO)

Francis Gaskins |

Juno Therapeutics IPO, Juno Therapeutics IPO date, Juno Therapeutics IPO price, IPOs this week, stocks to buy now, small-cap stocksJuno Therapeutics (JUNO) JUNO is building a fully-integrated biopharmaceutical company focused on revolutionizing medicine by re-engaging the body’s immune system to treat cancer. It is based in Seattle, WA. Price range mid-point increased to $22. No change in conclusion.

Four other companies are scheduled for the week of Dec. 15, 2014. The full IPO calendar is available at IPOpremium.

Manager, Joint-managers: Morgan Stanley, J.P. Morgan, and Goldman Sachs.

Co-managers: Leerink Partners.

JUNO scheduled a $153 million IPO on Nasdaq with a market capitalization of $1.3 billion at a price range midpoint of $16.50 for Friday, Dec. 19, 2014 on Nasdaq. SEC Documents

Juno Therapeutics IPO: Overview

JUNO is building a fully-integrated biopharmaceutical company focused on revolutionizing medicine by re-engaging the body’s immune system to treat cancer.

Juno Therapeutics Valuation

Glossary

Valuation Ratios

Mrkt Cap (mm)

Price /Sls

Price /Erngs

Price /BkVlue

Price /TanBV

% offered in IPO

annualizing Sept 9 mos

         

Juno Therapeutics (JUNO)

$1,257

no rev

-18.3

3.4

3.4

12%

             

Juno Therapeutics IPO: Conclusion

Buy

Cell-based cancer immunotherapies

IP from licenses, not internal development

Phase II trial 'before the end of 2015'

3.4 times book, which is 'in range'

P/E of -18 indicating 'moderate' cash burn relative to market cap

CL Alaska, L.P. may purchase $25mm on the IPO, 16%

Juno Therapeutics Business

JUNO is building a fully-integrated biopharmaceutical company focused on revolutionizing medicine by re-engaging the body’s immune system to treat cancer.

Founded on the vision that the use of human cells as therapeutic entities will drive one of the next important phases in medicine, JUNO is developing cell-based cancer immunotherapies based on its chimeric antigen receptor, or CAR, and high-affinity T cell receptor, or TCR, technologies to genetically engineer T cells to recognize and kill cancer cells.

JUNO has shown compelling evidence of tumor shrinkage in clinical trials using multiple cell-based product candidates to address refractory B cell lymphomas and leukemias.

Juno Therapeutics Intellectual property development

JUNE has assembled a talented group of scientists, engineers, clinicians, directors, and other advisers who consolidate and develop technologies and intellectual property from some of the world’s leading research institutions, including the Fred Hutchinson Cancer Research Center, or FHCRC, the Memorial Sloan Kettering Cancer Center, or MSK, and the Seattle Children’s Research Institute, or SCRI.

-- In October 2013, JUNO acquired substantially all of the assets of ZetaRx BioSciences, Inc., or ZetaRx, including patent license agreements with FHCRC and the City of Hope.

-- In October 2013, JUNO acquired a license to specific patent rights owned by, and entered into a collaboration agreement with, FHCRC.

-- In November 2013, JUNO acquired a license to specific patent rights owned by, and entered into a master sponsored research agreement, and a master clinical study agreement with, MSK.

-- In December 2013, JUNO obtained control over, and the right to a majority of any recovery above a certain threshold from, the causes of action owned by St. Jude Children’s Research Hospital, or St. Jude, in Trustees of the University of Pennsylvania v. St. Jude Children’s Research Hospital, Civil Action No. 2:13-cv-01502-SD (E.D. Penn.), as well as a license to specific patent rights owned by St. Jude, including U.S. Patent No. 8,399,645.

-- In February 2014, JUNO acquired a license to specific patent rights owned by, and a sponsored research agreement with, SCRI.

-- In December 2014, JUNO entered into an exclusive license agreement with Opus Bio, Inc., or Opus Bio, the effectiveness of which is subject to certain conditions, and pursuant to which Opus Bio has agreed to grant us an exclusive license under certain patent rights related to a CD22-directed CAR product candidate.

Juno Therapeutics Clinical trials

Before the end of 2015, JUNO plans to begin a Phase II trial that could support accelerated U.S. regulatory approval in relapsed/refractory B cell acute lymphoblastic leukemia, a Phase I/II trial in relapsed/refractory B cell non-Hodgkin’s lymphoma, and Phase I trials for at least five additional product candidates that target different cancer-associated proteins in hematological and solid organ cancers.

Longer term, JUNO aims to improve and leverage its cell-based platform to develop additional product candidates to address a broad range of cancers and human diseases.

Cancer is a leading cause of death in developed countries. Cancer is characterized by the uncontrolled proliferation of abnormal cells.

Cancer cells contain mutated proteins and may overexpress other proteins normally found in the body at low levels.

The immune system typically recognizes abnormal protein expression and eliminates these cells in a highly efficient process known as immune surveillance.

Cancer cells’ ability to evade immune surveillance is a key factor in their growth, spread, and persistence. In the last five years, there has been substantial scientific progress in countering these evasion mechanisms using immunotherapies, or therapies that activate the immune system. Immunotherapies are increasingly recognized as an important part of today’s frontier in the treatment of cancer.

White blood T cell

A central player in cancer immunotherapy is a type of white blood cell known as the T cell. In healthy individuals, T cells identify and kill infected or abnormal cells, including cancer cells.

JUNO leverages two technologies—CARs and TCRs—to activate a patient’s own T cells so that they attack cancer cells.

Through genetic engineering, JUNO inserts a gene for a particular CAR or TCR construct into the T cell that enables it to recognize cancer cells.

UNO’s CAR technology directs T cells to recognize cancer cells based on the expression of specific proteins located on the cell surface, whereas JUNO’s TCR technology provides the T cells with a specific T cell receptor to recognize protein fragments derived from either the surface or inside the cell.

Juno Therapeutics Intellectual property

JUNO has developed and in-licensed numerous patents and patent applications and possess substantial know-how and trade secrets relating to the development and commercialization of immunotherapy product candidates, including related manufacturing processes and technology.

Many of these in-licensed patents and patent applications claim the inventions of investigators at MSK, FHCRC, SCRI, City of Hope, and St. Jude.

As of December 5, 2014, JUNO’s owned and licensed patent portfolio consists of approximately 15 licensed U.S. issued patents, approximately 17 licensed U.S. pending patent applications, and approximately nine owned U.S. pending patent applications covering certain of JUNO’s proprietary technology, inventions, and improvements and JUNO’s most advanced product candidates, as well as approximately 14 licensed patents issued in jurisdictions outside of the United States and approximately 61 licensed patent applications pending in jurisdictions outside of the United States that, in many cases, are counterparts to the foregoing U.S. patents and patent applications.

Juno Therapeutics Competition

In addition to the current standard of care for patients, commercial and academic clinical trials are being pursued by a number of parties in the field of immunotherapy. Early results from these trials have fueled continued interest in immunotherapy and JUNO’s competitors include:

in the CAR space, Novartis / Penn; Kite Pharma / National Institutes of Health or NIH; bluebird bio / Celgene / Baylor; and Intrexon / Ziopharm;

in the TCR space, Adaptimmune / GlaxoSmithKline and Kite Pharma / NIH; and

in the cell therapy space, Cellectis / Pfizer.

Juno Therapeutics 5% shareholders pre-IPO

ARCH Venture Fund VII, L.P.      15.17%

CL Alaska L.P. and JT Line Partners L.P.            34.75%

Fred Hutchinson Cancer Research Center  5.17%

Robert T. Nelsen           15.17%                        

Juno Therapeutics Dividends

No dividends are planned.

Juno Therapeutics Use of IPO proceeds

JUNO expects to receive $139 million from its IPO and use it for the following:

$25.0 million to advance JCAR015 through a Phase II clinical trial and the filing of a Biologics License Application for the treatment of r/r ALL;

 $20.0 million to advance JCAR017 through a Phase I/II clinical trial and into a potential registration trial in r/r NHL;

 $15.0 million to further develop any additional product candidates that JUNO selects;

 $30.0 million to expand JUNO’s internal research and development capabilities;

 $20.0 million to establish manufacturing capabilities; and

 the remainder for working capital and other 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

Companies

Symbol Name Price Change % Volume
JUNO Juno Therapeutics Inc. 20.43 0.53 2.66 1,932,602

Comments

Emerging Growth

Star Navigation Systems Group Ltd.

Star Navigation Systems Group Ltd is engaged in the development, marketing and promotion of in-flight safety monitoring systems.

Private Markets

Santo Diablo Mezcal

Santo Diablo Mezcal has been created to capitalize on a boom sector of the beverage market currently full of many small unmemorable products by producing one sexy, household, easily recognizable…

D-Wave

D-Wave Systems is the first quantum computing company. Its mission is to integrate new discoveries in physics, engineering, manufacturing, and computer science into breakthrough approaches to computation to help solve…