An increased demand in Intec Pharma's initial public offering led to the raising of NIS 35.2 million through stocks and warrants. Intec Pharma, engaged in enhancing existing drugs with markets of hundreds of millions of dollars a year, intended to raise approximately NIS 30 million. However, in light of the high demand, which reached an approximate total of NIS 74.8 million, 2.2 times over and above the underwritten amount initially offered, the company succeeded in increasing the amount of the offer.The structure of the public offering consisted of 1.25 million units, each comprised of 30 shares and 12 warrants (Series 1), with a minimum unit price of NIS 23.4. The IPO closed at the higher price of NIS 27 and Intec Pharma received offers to purchase 1.3 million units. The total proceeds that Intec Pharma may receive upon exercise of the warrants (Series 1), assuming the full exercise of the warrants, is NIS 18.8 million.The investment was led by Apex Underwriting and Issue Management Ltd., Poalim I.B.I. - Managing & Underwriting, Ltd., Clal Finance Underwriting Ltd., Meitav Issuing and Finance, Ltd. and Excellence Nessuah Underwriting (1993) Ltd.
The proceeds will be utilized to support Intec Pharma's research and development activities to continue the development of its primary products- accordion pills that are combined with the following medications: Levodopa (Parkinson's), Zalepon (insomnia) and Baclofen (spasticity).Intec Pharma is engaged in enhancing existing drugs, which is one of the most common strategies used by pharmaceutical companies in order to protect their products from patent expiration, expand the range of applications for which the drugs are intended and to launch new patent protected products based on generic products.
Intec Pharma's patent protected technology extends the duration of time in which a drug remains in the stomach (gastric retention), resulting in significant prolongation of its absorption phase through the upper GI. Various medications that are absorbed through the upper GI could benefit by gastric retention via increased efficiency, a material reduction of significant side effects or reduced daily dosing frequency. Intec Pharma has developed a system of carrying drugs made from synthetic polymers on an accordion, folded into a standard capsule. After the capsule arrives in the stomach, the accordion spreads out by way of unique technology and remains there for a prolonged period of time, above and beyond the period of time other tablets and capsules are retained in the stomach. In this manner, the drug is released continuously and in a controlled manner in the stomach and then into the upper intestinal absorption area.
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