Actuate Therapeutics IPO represents a significant milestone for the company
Actuate Therapeutics, US-based clinical-stage biopharmaceutical company focused on developing innovative treatments for cancer and inflammatory diseases, has published that its IPO is going to be floated on the 13 of August 2024 and the period will end on 14 of August 2024. It aims to gather US$22.4 million with 2,800,000 shares of its common stock, with price range of US$8.00 to US$10.00.
Company Overview
Actuate Therapeutics Inc. is a clinical-stage bio pharmaceutical firm focusing on developing innovative therapy products for cancer and inflammation. The current lead compound, elraglusib (9-ING-41), is a small molecule that targets the enzyme glycogen synthase kinase-3 beta (GSK-3β) involved in several cellular processes including tumorigenesis such as pancreatic, breast and glioblastoma. The company aims to deliver creative approaches to treatment that can solve major medical needs.
Company Strategy
The company’s strategic focus is to identify and bring to market novel therapies for cancer and inflammation targeting glycogen synthase kinase-3 beta (GSK-3β). It is reflected in its affiliations with academic institutions, research organizations, and industrial partners to optimize its research and development activities. The company wants to speed up the drug delivery process by targeting indications with high levels of unmet needs and opportunities to be granted a fast track. With this form of targeting, Actuate aims to offer innovative therapies that enhance patients’ status and firmly establish itself in the biopharmaceutical industry.
IPO Profile
| Symbol: | ACTU |
| Exchange: | NASDAQ |
| Shares: | 2.8 million |
| Price Range: | US$ 8 to US$10 |
| Estimated Value: | US$22.4 million |
| Manager | Titan Partners |
| Co-managers | Newbridge Security Corp |
| Status: | Priced |
IPO Objective:
Actuate Therapeutics Inc. wants to utilize most of the IPO proceeds to support phase 3 clinical trials of its lead compound, elraglusib for hard-to-manage cancer types. It will also help fund the development of the company’s operations; this may involve hiring more employees for the organization as well as dedicating resources to the development of new technologies. Furthermore, going public will enhance the financial structure, support continuous research and development in the highly competitive life science industry, attract more investors and meet potential mergers with another pharmaceutical firm.
Application Process of IPO
In order to invest on NASDAQ, it is necessary to make use of a brokerage account. As a first step, enroll in a reliable brokerage firm that offers trading in NASDAQ, and fill out the registration form with your basic and financial information. In the next step, make some deposits into your account in preparation for buying shares. Enter the brokerage account trading division, identify the preferred stock, indicate the number of shares to be bought or sold, and select an order kind (Market, Limit or Stop). Reiterate your order information and finalize the purchase.
Financial Analysis of Company
ACTU has a market cap or net worth of $172.49 million. The enterprise value is $175.43 million.
| Particulars (in million) | 2023 | 2022 |
| Revenue | N/A | N/A |
| Gross Profit | N/A | N/A |
| Operating Income | -24.97 | -20.21 |
| Pretax Income | -24.74 | -20.16 |
| Net Income | -24.74 | -20.16 |
| EBITDA | -25.05 | -20.17 |
| EBIT | -25.05 | -20.17 |
Actuate Therapeutics has presented financials that are consistent with this development stage and an operating income of -US$24.97 million in 2023 relative to -US$20.21 million. The pretax loss was -US$24.74 million, and the net income was also -US$24.74 million in 2023, which is slightly worse than the -US$20.16 million the previous year. The company’s EBITDA and EBIT for the year ended 2023 were -US$25.05 million compared to -US$20.17 million in 2022, claiming that they would have higher operational costs. These numbers illustrate Actuate’s focus on enhancing its clinical trials and R&D as it advances toward an IPO, which intends to look for the required funds for further development in the future.
IPO Valuation (FY 2023)
The company’s EPS stands at a value of -US$ 1.45 and a NAV per share of US$ 0.054 in the financial year 2023. The IPO price band range of US$ 8 to US$ 10 per share to raise US$22.4 million with 2.8 million shares to investment in its pipeline for its growth and development.
| Earnings Per Share (EPS): | -US$ 1.45 |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | N/A |
| Net Asset Value (NAV): | US$ 0.054 |
Competitor Analysis
Actuate Therapeutics operates in a competitive landscape within the biopharmaceutical sector, particularly focusing on the development of novel therapeutics for cancer and inflammatory diseases. Here are some of its top competitors:
- TRACON Pharma
- RenovoRx
- Poniard Pharmaceuticals
- Vigeo Therapeutics
- Melior Discovery
- Hope Biosciences
- Salarius Pharmaceuticals
- BioPact
Details on Company Management
- Dan Schmitt – President and CEO
- Andrew Mazar – Chief Operating Officer
- Austin Koukol – Chief Financial Officer
- Chris Byrd – Clinical Program Director
- Andrey Ugolkov, – Chief Medical Officer
- Carrie Kellinger – Director of Regulatory Affairs
- Todd Thomson – Board Member
- Jason Keyes – Board Member
Actuate Therapeutics IPO represents a significant milestone for the company as it seeks to secure essential funding to advance its innovative therapies for cancer and inflammatory diseases. With a strategic focus on targeting glycogen synthase kinase-3 beta (GSK-3β) and addressing unmet medical needs, Actuate aims to position itself as a leader in the biopharmaceutical industry. The proceeds from the IPO will primarily support the critical phase 3 clinical trials of its lead compound, elraglusib, as well as strengthen the company’s operational capabilities and R&D efforts.
Despite the company’s financial challenges, as reflected in its current losses, the IPO offers an opportunity for investors to participate in the growth of a promising clinical-stage biopharmaceutical firm. The leadership team, with its combined expertise and commitment to innovation, is well-positioned to navigate the complexities of drug development and bring novel therapies to market.
As Actuate Therapeutics prepares to enter the public market, the company’s ability to attract investment and advance its pipeline will be crucial to its success. The IPO is not just a fundraising event but a step toward achieving long-term goals of improving patient outcomes and making a significant impact in the treatment of cancer and inflammatory diseases. Investors with an interest in the biopharmaceutical sector may find Actuate’s IPO an intriguing opportunity to support a company with a clear mission and potential for future growth.
