Transdermal delivery patchmaker Zosano to debut on Nasdaq

Transdermal microneedle patch maker Zosano filed for a $65 million IPO on the Nasdaq with the U.S. Securities and Exchange Commission. The share price and number of shares to be offered under the ticker symbol ZSAN were not disclosed. 

Zosano says its delivery system's titanium microneedles penetrate the skin to a depth of 200 microns or less, enabling the drug to take effect within 30 minutes. It has product candidates for severe osteoporosis, severe hypoglycemia and migraine, according to the S-1 filing. All of them use the quarter-sized ZP patch, and candidate for osteoporosis is in Phase III trials.

In February, the company signed an agreement with diabetes specialist Novo Nordisk ($NVO) to deliver semaglutide, an analog used to treat Type 2 diabetes. Zosano is set to collect $60 million for the first product in the deal and $55 million for each additional one.

In addition, the company earned $24 million from a 2011 partnership with Japan's Asahai Kasei Pharma to license the patch for delivery of AKP's osteoporosis drug. 

The company will use the influx of capital from the IPO to pay off loans. It posted a loss of $5.6 million in 2013, according to the Wall Street Journal.

Zosano was formed in 2006 as a spin off from Johnson & Johnson ($JNJ). It is that latest biopharma to chase the hot IPO market, including Tobira Therapeutics, Immune Design, and Macrocure, which expect to raise a combined $269 million.

- read the S-1
- here's the Wall Street Journal's take (sub. req.)

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