Chin-Up and Out!

KYTH traded 2.58M shares today closing near its gap up 25% this morning at $41.95 . There was distribution of stock probably from early investors to funds and retail. The market cap is $774M. As of June 30,2013 reporting the Company had Shareholder equity of $45.8M and Cash of about $76M.

Insiders (including Versant Ventures) own 45% of the stock with mutual funds and other institutions owning 33%.Fidelity (FMR LLC) owns over 4M shares.

Kythera has a very experienced management team  covering every major function, unusual for an early stage Company.

The Company went public October 12, 2012 at $16 raising $72.6M in Net Proceeds. Bayer AG holds the rights, outside the U.S. and Canada, to its only product ATX-101, which is a purified synthetic version of deoxycholic acid a naturally occurring molecule that breaks down dietary fat. Analysts think the product can be filed for approval by end of Q2 2014. Cowen has a price target of $50 and sees a $500M market for chin/fat reduction and presumable other indications. Leerink Swann also raised its price target to $50, assuming 2017 Revenues of $299.

Botox sales by Allergan, Inc. (AGN)are estimated at $2B in 2013 including both aesthetic and therapeutic indications.

———9/17 9:35 am

Is Aesthetic Medicine Another Frontier for Biotech?

Sequel to weight loss drugs

KYTHERA Biopharmaceuticals stock jumped 25 % to $42 on Phase III data for its submental fat drug meeting all primary and secondary endpoints.

From Press Release:

“The area under the chin is important to patients as it impacts overall facial harmony, balance and attractiveness; however, an undesirable double chin is often undertreated by aesthetic physicians as there is no proven non-surgical option to effectively reduce submental fat,” said Jean D. Carruthers, M.D., FRCSC, FRC, REFINE-1 investigator and Clinical Professor, Department of Ophthalmology, University of British Columbia, Vancouver. “ATX-101 could provide a solution that fulfills this unmet need and become an important addition to the overall practice of aesthetics.”

Kythera Biopharmaceuticals Inc (KYTH): Kythera Biopharmaceuticals – A Buyout Target Following Phase III Results – Seeking Alpha

Update at market close.

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