Hoth Therapeutics Completes IPO Just Two Years After Founding, Raising $7 Million

Recently, Artery New Medicine (WeChat Official Account: biobeat1) learned that on February 20, U.S. local time, biopharmaceutical company Hoth Therapeutics announced the completion of its initial public offering (IPO) of 1.25 million shares of common stock at an offering price of $5.60 per share. After deducting underwriting discounts, commissions, and other estimated offering expenses, the total net proceeds amounted to $7 million.

In addition, Hoth Therapeutics granted the underwriters a 30-day option to purchase up to 187,500 additional shares of common stock at the initial public offering price, net of underwriting discounts, to cover any over-allotments.

Laidlaw & Company (UK) served as the sole bookrunner for this offering, while Benchmark Company acted as the qualified independent underwriter. Hoth Therapeutics’ common stock began trading on the Nasdaq Capital Market on February 15, 2019, under the ticker symbol “HOTH.”

Hoth Therapeutics, headquartered in Ohio, USA, is a development-stage biopharmaceutical company focused on the research and development of unique targeted therapies for indications such as atopic dermatitis (also known as eczema). To treat conditions affecting more than 32 million Americans, Hoth Therapeutics is dedicated to developing and commercializing BioLexa, a patented drug compound platform developed at the University of Cincinnati.

The company holds exclusive global rights to the BioLexa platform. BioLexa is a patented topical formulation that combines chelating agents with a proprietary antibiotic formulation to combat cross-platform bacterial infections. It is currently indicated for eczema, cosmetic dermatology, surgical site infections, chronic wound care, and chronic diabetic wound care.

Data from the U.S. Centers for Disease Control (Centers for Disease Control) shows that more than two-thirds of skin infections are associated with “biofilms.” Biofilms are specialized bacterial colonies in which bacteria exhibit strong resistance to antibiotics and immune responses. The BioLexa platform is a synergistic combination of zinc chelators and antibiotics that prevents biofilm formation, making bacteria easier to eradicate with antibiotics.

Hoth Therapeutics plans to leverage the BioLexa platform to develop two distinct topical cream products: one for the treatment of eczema, and the other for reducing postoperative infections, accelerating wound healing, and improving clinical outcomes in patients undergoing cosmetic dermatological procedures.

Hoth Therapeutics, founded in 2017, has achieved rapid growth despite its short history. On July 12, 2017, the company raised $675,000 in its seed funding round. On February 22, 2018, it announced the completion of a $3 million Series A financing round. One year later, on February 15 of this year, the company officially listed on the NASDAQ stock market.

Laidlaw & Company, established in 1942 and headquartered in New York, USA, is a financial services firm that provides comprehensive investment banking services to emerging growth companies and wealth management services to institutional and individual clients. The company’s independent investment banking and securities brokerage businesses are dedicated to meeting the needs of domestic and international corporations, entrepreneurs, institutions, and private clients worldwide.

Benchmark, founded in 1995 and headquartered in California, USA, is a venture capital firm focused on early-stage investments in mobile, marketing, social, infrastructure, and enterprise software. Benchmark partners with entrepreneurs to build startups into transformative companies.

(Compiled by Nie Guanghong)