Stonebridge Biopharma (NASDAQ: SBBP) is an Irish firm established on May 26, 2015.

SBBP planned to offer 4.25 million shares of common stock last Friday, 10.2, with a price target of $17.93.

The company hoped to raise $75 million with a fully diluted market share price of $423 million.

The underwriters of the IPO include Bank of America Merrill Lynch, Stifel, JMP Securities, Roth Capital Partners and Arctic Securities.

Company Profile: Focus on Rare Diseases

Stonebridge focuses on the acquisition and commercialization of franchises that develop treatments for rare diseases, with a primary focus on Cushing's syndrome and acromegaly. The company states that these two rare diseases have a high unmet need for innovative treatment options. Stonebridge hopes to develop innovative treatment options for rare diseases that gain approval for use in the United States and the European Union.

Financial Overview (for the six months ended June 30th 2015)

Revenues - $0

Net Income - (-$23,517,000) (down from a loss of -$3,202,000 for the same time period in 2014)

Total Assets - $100,912,000

Total Liabilities - $13,626,000

Total Stockholders' Equity - $87,286,000

For a full breakdown, see Stonebridge's SEC filings.

Investment Risk Factors: Early Stage

To date, the company has not generated any revenues under the current business model and name Stonebridge Pharma. According to the company prospectus, it does not plan to generate any revenues or income any time in the near future.

(This is typical of an early stage biopharma firm.)

Top-Level Management Highlights

Matthew Pauls is the chief executive officer of Stonebridge Pharma, a position he has held since August 2014. Mr. Pauls served in executive roles at Insmed, Shire, Bristol Myers Squibb, and others. He holds B.S. and M.B.A. from Central Michigan University and a J.D. from Michigan State University College of Law.

Ruth Thieroff-Ekerdt, M.D. serves as the chief medical officer for Stonebridge Pharma since December 2014. Prior to Stonebridge, Dr. Thieroff-Ekerdt worked as the chief medical officer for Aptalis Pharmaceuticals, a position she held from February 2011 to February 2014.

Conclusion: Consider Holding Off

At times, biotech IPOs focused on rare diseases have not done as well as those treating cancer or more high-profile illnesses. The company relies heavily on investments from private life science investors, including New Enterprise Associates, R.A. Capital and HealthCap.

An additional risk is a material weakness noted in firm's internal control over financial reporting.

While the firm may hold longer term promise, we cannot fully recommend it at this early stage and suggest investors interested in IPOs consider others this week, such as Novocure (Pending:NVCR) and Performance Food Group (NYSE:PFGC).