AcelRx IPO: New Pain Management on the Way (ACRX)

February 11, 2011 · Filed Under Cancer, IPO, Pain · Comment 

AcelRx Pharmaceuticals Inc. (NASDAQ: ACRX) has its IPO priced for at least 8 million shares at $5.00 per share.  The company is pre-revenue and makes a treatment systems for sudden pain management.  The interesting aspect is that more shares were sold than expected, but at a lower price.

The company will use the proceeds from the offering for ongoing development and for the marketing efforts of its hand held painkiller delivery device. AcelRx is as also developing drugs to treat and manage pain associated with cancer as well as for mild sedation to be used by doctors for office treatments and procedures.

Piper Jaffray & Co. is the sole book-running manager and Cowen and Company, Canaccord Genuity, and JMP Securities are the co-managers for the offering.  AcelRx has granted to the underwriters a 30-day overallotment option to purchase up to an additional 1,200,000 shares of common stock at the offering price.

AcelRx’s lead product candidate is ARX-01 Sufentanil NanoTab™ PCA System and it completed Phase 2 clinical development.  This is designed to solve the problems associated with post-operative intravenous patient-controlled analgesia which harms patients after surgery due to the side effects of morphine, the invasive IV route of delivery, and the inherent potential for programming and delivery errors associated with the complexity of infusion pumps.

After the effect of the offering, the four largest venture groups will still own close to 80% of the outstanding shares.

JON C. OGG

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