Biotech investors around the world are bracing themselves for Poseida Therapeutics’ market debut, as the San Diego-based company’s planned IPO could end up generating well over $100 million if things go according to plan. According to filings recently made with the SEC, the company intends to lure in as many biotech investors as possible despite turbulent global markets that are still reeling from the ongoing trade war.
Here’s everything investors need to know about Poseida Therapeutics ahead of the company’s ambitious foray into the market, and how it hopes to make it big by mercilessly targeting multiple myeloma.
Poseida could rake in as much as $115 million
The biggest takeaway from the recent S-1 filing that Poseida Therapeutics (NASDAQ: PSTX) made with the SEC is that the company is looking to rake in as much as $115 million by pitching its ambitious personalized immunotherapy treatment to the market. A particular cancer called CAR-T is a popular market for biotech initiatives right now, as many see the debilitating disease as conquerable within the foreseeable future. By pioneering the personalized and complex treatment process for cancers like CAR-T, Poseida Therapeutics is hoping to convince investors that it can one day turn a profit and become a major player in the biotech market.
The ongoing trade war that’s buffeting global markets has been brutal to tech companies lately, however, and many investors will want the inside details on Poseida Therapeutics before throwing their full weight behind it. According to filings made with the SEC, the company is currently losing money, a familiar facet of the biotech industry that will nonetheless prove to be a hurdle that must be overcome. In the nine months ended September 2018, for instance, Poseida lost over $31 million, an increase from the nearly $15 million it lost in that same period the year before.
If these kinds of losses continue, investors will want to demand some serious progress when it comes to clinical test trials and marketing a viable product. The company has some positive developments to boast about on that front ahead of its market debut; the gene-engineering company was recently granted an RMAT Designation from the FDA for its P-BCMA-101 therapeutic candidate drug. If the biotech company can convince investors that it will be able to deftly navigate the rest of the arduous clinical trials process, it may have an incredibly vibrant IPO.
The biotech market is a brutally competitive space where even small failures to deliver a marketable product by a certain date can result in terrible losses, however. Regardless of how well Poseida Therapeutics is doing lately, investors will be expecting great things from the executives who are leading the company forward into the public sphere. The fact that the company rang in the new year with an announcement that it would be expanding its board of directors could help buoy confidence in that realm.
The Team At Poseida Therapeutics Is Growing
While some biotech investors may have been anxious about Poseida Therapeutics’ prospects before the new year, the recent announcement that the company was bringing on Dr. Catherine Mackey and Ms. Marcea Lloyd may help its IPO reach new heights. Biotech companies with a diverse board of directors capable of navigating a complex and rapidly-changing marketplace of online title loans are likely looking good to many investors right now, especially as turbulent global conflicts make some traditional tech stocks risky.
At the end of the day, however, Poseida Therapeutics will decide its own fate in the market on the basis of how well it delivers marketable results. The company has already begun its first human trial and has tracked 14 clinical responses among the 19 patients who make up that study. Phase II of that endeavor is slated to kick in later this year, and with the company demonstrating that it understands how to navigate the FDA’s tough territory investors will likely have something concrete in return for their money sooner rather than later.
Biotechs that can’t produce marketable results or at the very least positive data to back their endeavors are quickly eaten up by the market. Everything that we know about Poseida Therapeutics right now indicates that the company has a strong chance of delivering on its promises, however, and investors can expect a big IPO when it hits the open market. Despite the recent wallop some tech stocks have taken, expect Poseida Therapeutics to have a mammoth debut.