Aspreva’s IPO generates $113 million

Deal will help the Victoria company and its partners bring more drugs to market

Business in Vancouver March 28-April 3, 2006; issue 857
By Andrew Petrozzi

B.C. biotech got a big boost last year when Aspreva Pharmaceuticals Corp. (TSX:ASV) generated over $113 million in its initial public offering.

The Victoria company’s IPO, which closed early last March, sold 8,280,000 common shares at US$11 apiece. The exchange rate at the time pegged the individual share price at $13.68 for proceeds of $113.27 million.

The original IPO had called for the sale of 7,200,000 shares with an underwriter’s option for an additional 1,080,000 shares.

The offering was made through an underwriting syndicate led by Merrill Lynch & Co., co-led by Banc of America Securities LLC, and co-managed by Pacific Growth Equities LLC and BMO Nesbitt Burns Inc.

The company subsequently started trading on both the Toronto Stock Exchange and the Nasdaq National Market.

According to Aspreva chairman Richard Glickman, proceeds from the deal funded three Phase 3 clinical programs, lifecycle expansion opportunities for CellCept and continued business development.

The offering helped Aspreva pursue its “indication partnering” strategy to assist pharmaceutical companies in commercializing drugs and drug candidates that fall outside their core strategic focus.

Aspreva’s plan involves collaborating with potential partners by taking responsibility for funding and executing clinical development, regulatory approval and, upon approval, full commercialization.

Founded in 2001, Aspreva entered its first such partnership in July 2003, when it acquired the exclusive worldwide rights (excluding Japan) through 2017 to CellCept from Hoffmann-La Roche Inc. and F. Hoffmann-La Roche Ltd. for the treatment of autoimmune diseases. Beginning April 1, 2005, Aspreva was entitled to CellCept revenues under its collaboration agreement with Roche.

“We are proud of the relationship we have established with our partner, Roche, and together we’re committed to clinically developing CellCept through to regulatory approval and registration for use in the treatment of the three autoimmune indications lupus nephritis, myasthenia gravis and pemphigus vulgaris,” said Glickman in a statement accompanying the Aspreva’s 2005 year-end results.

Full year revenues were $76.5 million with earnings of $0.62 per share.

“This has been a great year for Aspreva as we delivered significant clinical milestones, further established our innovative business model in the pharmaceutical industry, and delivered outstanding financial returns for our investors. We remain committed to our goal of changing the treatment landscape for people living with less common diseases,” he said.

apetrozzi@biv.com