Ultrasound contrast developer Acusphere of Cambridge, MA, launched an initial public offering last week. The IPO is being closely watched for signs of strength in the biotechnology sector, where a number of other companies are mulling public offerings.
The company offered 3.75 million shares at an offer price of $14 a share on October 8, hoping to raise gross proceeds of $52.5 million. A week later, however, the stock had closed at $12.15 on October 14, representing a decline of 15% from its offer price.
Acusphere is developing a range of biopharmaceutical products based on the company’s porous microparticle technology. Its lead product in development is AI-700, an ultrasound contrast agent designed for myocardial perfusion assessment in stress-echo exams.
Acusphere designed AI-700 around a synthetic polymer that the company believes is superior to the natural materials used in existing ultrasound contrast agents. These agents are prone to breakdown when exposed to an ultrasound beam, according to the company, and thus have a short duration in the bloodstream and limited utility for myocardial assessment.
Due to its design, AI-700 should have a longer persistence in the bloodstream and therefore should prove useful for myocardial perfusion, which represents the lion’s share of cardiac assessment studies, the company said.
Acusphere hopes to compete with nuclear stress testing in the cardiac assessment segment. It estimates that an AI-700 exam will cost $400, with the contrast agent making up half that expense, while a nuclear stress test typically costs $935 per procedure. An AI-700 procedure will also be less invasive and quicker than a nuclear cardiology test, the company said.
Acusphere started phase III clinical testing of AI-700 earlier this year, and plans to file a new drug application (NDA) for the product in 2005.
By AuntMinnie.com staff writers
October 15, 2003
Related Reading
Acusphere gets financing for development, April 21, 2003
Acusphere launches phase III trials, February 26, 2003
Acusphere raises $15 million, July 24, 2002
Acusphere US contrast agent research presented at ASE, July 19, 2001
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