Valeritas raises IPO stakes, looks for $60m

Valeritas this week raised the stakes for its upcoming initial public offering, looking to raise $60 million by floating 6 million shares at between $9 and $11, up from an earlier hoped for $50 million.

Bridgewater, N.J.-based Valeritas makes the V-Go basal insulin delivery system for Type II diabetes, a fully disposable, continuous-delivery device that’s designed to function for 24 hours based on a preset rate, with on-demand dosing for meals.

A total of $40 million in the offering are slated to go to insiders, and the IPO would give Valeritas a market value of approximately $104 million, according to a Renaissance Capital release.

Valeritas in March 2016 formally withdrew its 1st stab at an IPO, in which it had planned to put up 5 million shares at $14 to $16 each, for a gross of $75 million at the midpoint. A few months later the company raised $25 million through an “alternative public offering” via a reverse merger and a private placement. Through the reverse merger, Valeritas trades on the OTC market under the “VLRX” symbol, which it still plans to use when it jumps to the NASDAQ exchange in the current, $50 million IPO, according to an SEC filing.

The company booked $19 million in sales for the 12 months ended Sept. 30, 2016. Cowen & Co. and Wedbush PacGrow are the joint bookrunners on the deal.

Valeritas, which raised a $150 million Series C round in 2011, drummed up another $100 million in a structured debt financing 2 years later.

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