Hyperion's IPO a model for biotech — and that's not all good

Hyperion Therapeutics Inc.’s planned $57.5 million IPO is a story of risk, potential reward and even a hint of desperation.
It is a familiar story of Bay Area biotech initial public offerings, which have been far and few between in the past couple of years. In fact, Hyperion’s back story is not very different from that of Novato’s Raptor Pharmaceutical Corp.: young company, improved drug, small patient population and, possibly, a product on the market by early next year.
But there are some twists and turns in Hyperion’s tale — including one that might catch the interest of federal antitrust investigators.

Hyperion Therapeutics seeks $57.5 million from rare biotech IPO

Hyperion Therapeutics Inc., a South San Francisco biotech company developing drugs against metabolic disorders, will seek $57.5 million in an initial public offering.
Hyperion’s filing Friday with the Securities and Exchange Commission is significant because biotech IPOs have been far and few between, especially in the Bay Area, over the past four years.
Hyperion, led by CEO Don Santel, said it would use the net proceeds to fund clinical development, win regulatory approval and launch Ravicti, its experimental treatment for urea cycle disorders and hepatic encephalopathy.
It also plans to use the money to repay up to $22 million of a potential loan from Ucyclyd Pharma Inc., a subsidiary of Medicis Pharmaceutical Corp. (NASDAQ: MRX), over eight quarters, make milestone, royalty and license payments to Ucyclyd and Brusilow Enterprises LLC, and for general corporate purposes.

You're so vain: Baby boomers, tech and lower risk for investors pump up aesthetics, vanity market

Kerry Pope wants to liberate women — and make some money in the process.
Pope’s Palo Alto company, Viveve Inc., is launching a product that promises to tighten vaginal tissue stretched by childbirth and return women’s sex lives to pre-child days. The half-hour radiofrequency technology procedure, already used to tighten saggy facial skin, allows women to return home or to work with nary anyone else the wiser for it.
“It’s all about her,” Pope said.
It also is about opportunity.
Vain baby boomers looking to suck, heat, squeeze or freeze their way toward the fountain of youth are pumping up a $10 billion-a-year market. Lower regulatory risk for companies and investors, a new wave of technologies and consumers willing to pay out of pocket are fattening up the industry as well.
Call it the aesthetics, personal care or vanity market, but one thing is sure: Even in a tough economy, a cadre of Bay Area companies with science-backed, minimally invasive methods for smoothing wrinkles, removing love handles or even restoring couples’ sex lives are tapping consumer lust for younger days.

Solta to buy ultrasound fat treatment company from Medicis

Solta Medical Inc. will buy all of the outstanding shares of Medicis Technologies Corp. for $15 million at closing and up to $20 million after hitting regulatory and sales milestones with Medicis’ products, including one using ultrasound technology to reduce fat.
It is the latest pickup by Hayward-based Solta (NASDAQ: SLTM), which has built a portfolio of aesthetics products through acquisition. Last year, it bought CLRS Technology, which uses heat and light to treat acne, and Aesthera Corp., which makes skin treatments that use light and air pressure.
Now it could have Medicis Technologies’ fat-burning LipoSonix technologies by the end of the year.

Anacor to get up to $160M in Medicis acne deal