Jun 11, 2007

Zars Pharma Files IPO To Sell Up To $86.25M In Stock

Brian Coyle

Pharmaceutical company Zars Pharma Inc. filed an initial public offering to sell up to $86.25 million in common stock, according to a Form S-1 filed with the Securities and Exchange Commission.

Details about the number of shares offered and estimated price range for the IPO weren't disclosed in Monday's SEC filing.

Zars, based in Salt Lake City, Utah, is a specialty pharmaceutical company focused on the development and commercialization of topically administered drugs in the area of pain management. According to a VentureWire story from early 2006, the company has $41 million in backing, including a $22 million Series C round in September 2004. Backers include Draper Fisher Jurvetson, with a 23.1% stake, Wasatch Venture Fund, with 8.1%, and vSpring II LP, with 5.4%

Zars said it plans to use net proceeds from the IPO to support the clinical development of ThermoProfen and for other product candidates. Proceeds also will be used to support research and development activities, to fund manufacturing development and for working capital and other general corporate purposes, the filing said.

Cowen and Co., CIBC World Markets, Leerink Swann & Co. and Susquehanna Financial Group LLLP were listed as underwriters for the offering.

For the first quarter ended March 31, Zars reported a net loss of $2.4 million, about even with the loss reported in last year's comparable period.

The company said it plans to list its stock on the Nasdaq Global Market under the symbol ZARS.

The $86.25 million valuation for the IPO was estimated solely for calculating the registration fee, the filing said. Often, the eventual price terms of an IPO offer differ substantially from the valuation in the first registration.