****************** DAIWA NEW ISSUE COLOR: ITMN ***************** $85m (+12.75m) sen unsec cb coming tonight from GS/JPM. Terms:
5y, 3⅛-3⅝% up 25-30%, 2.5y S/C @ 130%. Cncrnt 12.5m (+1.875m) stk deal. UOP=repay 5% cb/fund Ascend trial/gcp. $660m mkt cap
1 drug Biotech focussing on pulmonolgy/fibrotic diseases. It’s Esbriet drug is in PIII within US, already used in 10 countries, expected to be in another 6 in ’13 (See CREDIT COLOR). Estimated US launch in ’15 & expected to be a blockbuster. $554m PF cash will help burn until launch. We’d use L+750. ADV=403k, no leaps, we’ll default to our 35vol cap. Theo=102/103.8/104.6. Small deal w/a very interesting equity/credit story. Expect equity x/over interest & those playing stk post placement. If you expect big a llocations, don’t hold your breath. >BUY< (bbg/Co filing)
———> Daiwa New Issue Credit Color: Intermune <————
* Biotech focused on pulmonology and fibrotic diseases.
* PF Cash $554mm PF Debt $325mm LTM EBITDA $(176)mm
LTM FCF $(175)mm Yrs Cash 3.2yrs Mkt Cap $660mm
* ITMN has launched Esbriet (IPF treatment) in 9 EU countries & recently in Canada. Expect to launch in Spain & Italy & 4 smaller EU countries this yr. Conducting 3’rd P3 trial in US, expect results 1H14. Possibly on US mkt ’15 w/potential to be blockbuster in a few yrs. Currently, nothing competing on mkt, but HIH & Boehringer Ingelheim are both conducting P3 trials on treatments, w/ results also expected 2014. Significant cash will cover burn for a few yrs. No other pipeline.
* Our assigned spread —>L+750<— Src: Bloomberg, Co Filings