Kiromic BioPharma (KRBP) has filed to raise $20 million in an IPO of its common stock, according to an S-1 registration statement.

The company uses a proprietary machine learning enhanced platform to target promising compounds for the treatment of lymphomas and solid tumors.

KRBP is an extremely early stage biopharma firm with a resulting high risk profile that is more relevant to institutional investors than individuals.

Houston, Texas-based Kiromic was founded to advance a pipeline of drug candidates to treat various lymphomas and solid tumors.

Management is headed by Chairman and CEO Maurizio Internati, DBSc, PhDs., who has been with the firm since 2012 and was previously an associate professor at the MD Anderson Cancer Center in Houston, Texas.

Below is a brief overview video of the symptoms of lymphoma:

Source: Lymphoma Action

The firm has a number of candidates, all of which are in pre-IND phase, so none have actually entered Phase 1 safety trials.

Below is the current status of the company’s drug development pipeline:

Source: Company S-1 Filing

Source: Company S-1 Filing

Investors in the firm have invested at least $25 million to-date.

According to a 2019 market research report by Grand View Research, the market for lymphoma treatments is expected to reach $26.4 billion by 2026.

This represents a forecast CAGR (Compound Annual Growth Rate) of 9.5% from 2019 to 2026.

Key elements driving this expected growth are a strong research pipeline of new treatments to meet additional demand due to growing incidence of lymphomas in an aging population and increasing awareness of treatment options.

Major competitive vendors that provide or are developing treatments include:

  • Seattle Genetics (SGEN)
  • Takeda Pharmaceuticals (TAK)
  • BeiGene (BGNE)
  • Celgene (CELG)
  • Bristol-Myers Squibb (BMY)
  • Merck & Co. (MRK)
  • Abbott Laboratories (ABT)
  • Eli Lilly & Company (LLY)

Kiromic’s recent financial results are typical of pre-clinical stage biopharmas in that the firm has no revenue and material R&D and G&A expenses associated with its development programs.

Below are the company’s financial results for the past two years (Audited PCAOB):

Source: Company registration statement

Source: Company registration statement

As of December 31, 2019, the company had $1.9 million in cash and $673,700 in total liabilities. (Unaudited, interim)

Kiromic intends to raise $20 million in gross proceeds from an IPO of its common stock, although the final amount may be different.

No existing shareholders have indicated an interest to purchase shares at the IPO price.

Management says it will use the net proceeds from the IPO for initiation of clinical trials for its ALEXIS AIDT-2 EOC and PD-1-AR product candidates, ...intellectual property protection and reinforcement and the remainder for working capital and general corporate purposes.

Management’s presentation of the company roadshow is not available.

The sole listed bookrunner of the IPO is ThinkEquity.

Commentary

Kiromic is seeking funding for its drug pipeline, which is still in extremely early stages of development.

The firm’s lead candidate, its Alexis AIDT-2 EOC compound, is still in pre-IND stage and has some time before entering Phase 1 safety trials.

The market opportunities for treating lymphomas and solid tumors are quite large and expected to grow in the coming years due to an aging population base. As people age, their immune systems weaken, resulting in greater incidence of cancers.

The company has no disclosed collaboration partners.

ThinkEquity is the sole underwriter and there is no data on IPOs led by the firm over the last 12-month period.

Kiromic is a quite early stage firm for going public, so would present a long-term and ultra high risk investment opportunity.

I’ll provide a final opinion when we learn more details about the IPO.

Expected IPO Pricing Date: To be announced.

(I have no position in any stocks mentioned as of the article date, no plans to initiate any positions within the next 48 hours, and no business relationship with any company whose stock is mentioned in this article. Information provided is for educational purposes only, may be incomplete or out of date, and does not constitute financial, legal, or investment advice.)