AveXis Incorporated expects to raise $76.5 million in its upcoming IPO. Based in Bannockburn, Illinois, AveXis (NASDAQ: AVXS) is a clinical-stage gene therapy company that is developing novel treatments for patients suffering from rare neurological genetic diseases.

We previewed AVXS on our IPO Insights Platform, which includes deals on deck and real-time alerts. We also highlight opportunities to buy and short newly public companies at their IPO quiet period and lockup period expirations.

AVXS will offer 4.25 million shares at an expected price range of $19 to $21.

AVXS filed for the IPO on January 15, 2016.

Lead Underwriters: Goldman Sachs and Jeffries LLC

Underwriters: BMO Capital Markets and Chardan Capital Markets

Business Summary: Clinical-stage Gene Therapy Company Developing Treatments for Rare Neurological Diseases

AveXis is a clinical-stage pharmaceutical company that engages in developing and selling novel treatments for patients suffering from rare, life-threatening neurological diseases. Its initial product candidate is AVXS-101, which is currently in Phase 1 clinical trials for treating spinal muscular atrophy type 1. The proprietary gene therapy candidate has been granted orphan drug designation for treating all types of spinal muscular atrophy and Fast Track designation for treating SMA Type 1, which the company notes is one of the most life-threatening neurological genetic disorders.

The company intends to use the proceeds of the initial public offering to fund the ongoing Phase 1 trial and future clinical trials, fund manufacturing capabilities, and for general corporate purposes including general and administrative expenses and working capital.

AveXis was formerly known as BioLife Cell Bank and changed its name to AveXis in January 2014. The company was founded in 2010.

Executive Management Overview

President, CEO and Director Sean Nolan has served AveXis since June 2015. His previous experience includes senior executive positions at InterMune, Reata Pharmaceuticals, Lundbeck, and Abbott Laboratories. Mr. Nolan received a Bachelor of Science degree in Biology from John Carroll University.

CFO and SVP Thomas Dee has served AveXis since August 2015. He also serves as VP of Finance and Controller of Abbott International. His previous experience includes senior positions at Abbott Laboratories and Abbot India Limited. Mr. Dee has qualified B. S. Accountancy from Northern Illinois University and is a certified Public Accountant. He also holds an MBA Kellogg School of Management from Northwestern University, Evanston.

Potential Competition: Voyager Therapeutics and Genethon

While there is no FDA approved treatment for SMA, several companies are working to develop and commercialize viable treatments. These companies include Voyager Therapeutics (NASDAQ:VYGR), Genethon, Ionis Pharmaceuticals (NASDAQ:IONS), PTC Therapeutics (NASDAQ:PTCT), Roche Holding, and Novartis (NYSE:NVS).

Financial Overview: Too Early For Revenues

AveXiz Incorporated provided the following figures from its financial documents for the nine months ended September 30:

As of September 30, 2015:

Conclusion: Consider An Allocation

We like this Goldman-led deal, following the success of gene-therapy company BGNE last week. AveXis possesses novel technology, which usually involves a long path towards acceptance and commercialization. Additional risks include some negative public perception to gene therapies, material weakness in internal reporting noted, and intense competition.

We hear the deal is developing well-already oversubscribed despite the tricky market conditions-and suggest investors consider an allocation.