Case Study: A Dermatologic Pharmaceutical Company

Case Study Background

Amato and Partners advised an early-stage public company through an extended period of growth. A pharmaceutical company, this was the first pure dermatology focused company of its kind. We provided full IR services to the company for more than 10 years, beginning shortly after they went public through a reverse merger into a public shell at approximately $0.60 per share.

Capital Markets Visibility

Our primary objective was to provide aftermarket support to increase the trading/liquidity of the stock. This was accomplished in part by setting up one-on-one meetings with retail brokers and individual investors to increase awareness of the company’s story in the investment community.

Another key component of gaining visibility was securing invitations for company management to present at industry conferences, to create awareness among retail and institutional investors.

Coordinating sell-side research is an essential element of any strong investor relations program. Through our extensive contacts in the capital markets we were able to gain sell-side research for the company. This was an important step in providing visibility for a company to both institutional and retail investors.

To further enhance the company’s profile, we created collateral materials, including an investor presentation deck and a corporate fact sheet, and also provided press release development and distribution services.

Reverse Stock Split

The company needed to clean up their capital structure, holding over 170 million outstanding shares. To accomplish this, the company executed a 1-for-14 reverse stock split. The stock was then positioned with a share price of about $5.00.

The company’s profile continued to rise; we secured sponsored, non-deal roadshows with investment banks interested in introducing the company to their institutional clients.

Through our continued dissemination of information and an aggressive capital markets visibility program, the stock price was maintained at the new level.

Follow-On Offering

The company was able to complete a successful follow-on offering. They raised more than $95 million, which funded acquisitions of additional companies and products.

Current Status

The company was sold for $2.6 billion in December 2012.

 

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