Wednesday, May 22nd, 2013
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Risks associated with Hyperion Therapeutics IPO

Hyperion Therapeutics IPO watch: Hyperion Therapeutics set the terms for its IPO (initial public offering) recently. According to the regulatory filing, the company is applying to list the shares of their common stock on The NASDAQ Global Market under the symbol “HPTX,” proposing to raise funds of up to $57.5 million. The numbers of shares that will be offered in this public offering and the Hyperion Therapeutics IPO price have not been disclosed yet.

Hyperion Therapeutics was established in November 2006 and is a biopharmaceutical company focused on the development and commercialization of novel therapeutics to treat disorders in the areas of orphan diseases and hepatology. The company is currently devoting itself to developing “Ravicti” to treat urea cycle disorders and hepatic encephalopathy.

The net proceeds from the Hyperion Therapeutics IPO will be primarily used for funding clinical development, regulatory approval, post-marketing studies and, if approved, the commercial launch of Ravicti; repaying potential loans and general corporate purposes.

There are some risky points the investor must consider carefully:

First, the company currently has no source of revenue and may never become profitable.

Second, the company’s future depends substantially on the success of the only product candidate which has the possibility not obtaining regulatory approval by the FDA or the company is unable to successfully commercialize it.

Leerink Swann LLC and Cowen and Company, LLC are acting as joint book-running managers and representatives of the underwriters for the Hyperion Therapeutics IPO. Needham & Company, LLC are also working as the deputy underwriters on this deal.

Hyperion Therapeutics IPO 

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