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Law360 (April 26, 2021, 5:28 PM EDT) -- A coronavirus vaccine inventor and Jessica Alba's baby care products business were among four companies to set price ranges Monday on initial public offerings that could raise a combined $711 million, under the guidance of six law firms including Davis Polk, Cooley and Goodwin Procter.
U.K.-based Vaccitech PLC, advised by Goodwin Procter LLP, told regulators Monday it plans to offer 6.5 million American Depositary shares priced between $16 and $18, raising $110.5 million at midpoint. Vaccitech co-invented and developed technology for AstraZeneca PLC's coronavirus vaccine.
The Honest Company, a baby care and consumer products business founded by actress Jessica Alba, joined Vaccitech with an estimated $400 million IPO. The Los Angeles-based Honest Co., advised by Cooley LLP, plans to offer 25.8 million shares priced between $14 and $17.
Cancer-focused biotechnology firm Werewolf Therapeutics Inc., advised by WilmerHale, and California bank Five Star Bancorp, advised by Covington & Burling LLP, also lined up offerings estimated to raise $100 million each.
Vaccitech and Werewolf are scheduled to price their offerings this week, according to IPO research firm Renaissance Capital, joining a lineup of five other companies set to go public by Friday including sports and talent agency Endeavor Group Holdings Inc. The Honest Co. and Five Star expect to price their offerings the week of May 3, according to Renaissance Capital.
Oxford-based Vaccitech develops therapies and vaccines to treat various cancers and infectious diseases. Vaccitech co-invented a COVID-19 vaccine with the University of Oxford, which has since been licensed to pharmaceutical company AstraZeneca for distribution in Europe.
Vaccitech, whose shareholders include Google Ventures, the investment arm of the online search giant, plans to spend most proceeds on developing new therapies, including drugs designed to treat hepatitis B and human papilloma virus.
"We use our proprietary platform to develop product candidates that stimulate powerful, targeted immune responses against pathogens and tumor cells," Vaccitech told the Securities and Exchange Commission in an amended registration statement on Monday.
The Honest Co. promotes a "clean lifestyle" through its products, which include diapers, skincare, and household and wellness items. Co-founded in 2012 by Jessica Alba, who starred in the Fantastic Four and other movies, the venture-backed Honest Co. said its business benefited from health-conscious trends that arose following the spread of the coronavirus. The company said its baby products stress plant-based ingredients over synthetic chemicals.
"When the COVID-19 pandemic hit and we went into lockdown, people became more aware of their health and what they bring into their homes," the Honest Co. told the SEC.
The company's claims of using natural ingredients have also drawn litigation. A Los Angeles Superior Court in 2018 dismissed a suit by the Organic Consumers Association, alleging the Honest Co. misrepresented that its baby formula is organic. The Honest Co. also paid $7.35 million in 2017 to settle proposed class action suits that alleged it falsely marketed its products as "all natural."
The company is now on an upswing. The Honest Co. reported $300.5 million in revenue in 2020, up 28% from the prior year, though it has yet to turn a profit. The company said IPO proceeds could fund growth initiatives, including acquisition of new products or businesses.
Cambridge, Massachusetts-based Werewolf plans to offer 6.25 million shares priced between $15 and $17, using proceeds to develop therapies that would treat solid tumors. Rancho Cordova, California-based Five Star plans to offer 5.3 million shares priced between $18 and $20, using proceeds to fund a cash distribution to its shareholders and grow its market share. Five Star currently operates seven branches in northern California.
Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Jefferies LLC, BofA Securities Inc., Citigroup Global Markets Inc., William Blair & Company LLC and Guggenheim Securities LLC are lead underwriters for The Honest Co. They are represented by Davis Polk & Wardwell LLP.
Morgan Stanley, Jefferies, Barclays Capital Inc. and William Blair & Company LLC are lead underwriters for Vaccitech. They are represented by Davis Polk.
Jefferies, SVB Leerink LLC and Evercore Group LLC are lead underwriters for Werewolf. They are represented by Cooley.
Keefe, Bruyette & Woods Inc. is the lead underwriter for Five Star and is represented by Latham & Watkins LLP.
--Editing by Philip Shea.
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