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Busy IPO Market Making Up for Lost Time

Last week was a huge one for initial public offerings, as companies who had delayed the big move due to the country’s financial crisis now try to make up for lost time. Six of the companies on top of the IPO list are shown below.

  • Zoe’s Kitchen, Inc. (ZOES) – Texas based Zoe’s Kitchen is a growing restaurant chain cashing in on the burgeoning demand for healthy non-processed foods made from scratch. The company currently has over 110 locations in 15 states, and offers Mediterranean-inspired dishes. The company motto is: “If it wasn’t food 100 years ago, it isn’t food today.” Zoe’s announced its IPO of 5,833,333 shares of common stock at a price to the public of $15.00 per share, with shares beginning trade Friday on the NYSE under the ticker symbol ZOES.
  • Lombard Medical Technologies (EVAR) – Lombard develops and produces endovascular stent-grafts to repair aortic aneurysms. Aorfix, the company’s lead product, is currently the only abdominal aortic aneurysm stent-graft approved by the FDA for the treatment of such aneurysm’s with angulation of up to 90° at the neck of the aneurysm. Abdominal aortic aneurysms are a major cause of death in the U.S. The company initiated its IPO Friday, offering 3.6 million shares priced at $15-$18 per share, listing on the Nasdaq exchange under the ticker symbol EVAR.
  • Aldeyra Therapeutics (ALDX) – Aldeyra is a biotechnology company focused on developing drugs to eliminate free aldehydes, naturally occurring inflammation-inducing chemicals that are factors in a number of diseases. The company says that they are unaware of any associated FDA approved therapy like this. Aldeyra’s Friday IPO covered 2.2 million shares, priced at $10-$11, on the Nasdaq exchange, under the ticker symbol ALDX.
  • Paycom Software (PAYC) – Oklahoma City based Paycom Software provides cloud software for payroll, human resources, and other human capital management requirements. The company’s offerings are designed to help companies streamline their employment processes and eliminate redundant data entry. Paycom’s Friday IPO was for 6.6 million shares, priced between $18 and $20, on the NYSE, under the ticker symbol PAYC.
  • Enable Midstream (ENBL) – A publicly traded limited partnership, Enable Midstream owns, develops, and operates strategically located natural gas and crude oil infrastructure assets in major producing basins. Using these assets, the company provides comprehensive services to gather, process, transport, and store primarily natural gas in the south central U.S. The company’s IPO offered 25 million common units representing limited partner interests at a public price of $20.00 per common unit, on the NYSE, under the ticker symbol ENBL.
  • Phibro Animal Health Corp. (PAHC) – New Jersey based Phibro is one of the world’s leading animal health companies, focused on helping to meet the growing demand for animal protein. They provide livestock producers with a broad range of products and solutions to help maintain and enhance the health and productivity of animals. Stock covered includes beef and dairy cattle, poultry, swine, and even aquaculture. The company’s IPO offered 11,765,000 shares of its Class A Common Stock, with an estimated price range for the initial public offering of $16 to $18 per share, on the Nasdaq, under the ticker symbol PAHC.

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VistaGen Therapeutics, Inc. (VSTA) Commercial Drug Rescue Potential Underwritten by Stem Cell Bioassay’s Cardiac Drug Safety Benchmarking

VistaGen’s human pluripotent stem cell (hPSC) based approach to salvaging the massive outlays that are otherwise eaten when a once-promising drug candidate is dropped due to unexpected heart or liver toxicity complications (or preemptively preventing such losses), using their proprietary Human Clinical Trials in a Test Tube™ platform to accurately model the effects and develop safer Drug Rescue Variants™, also happens to be extremely useful for modeling non-toxic effects and thus represents a framework technology for drug development unlike anything which has come before it. The core component of this platform, an in-vitro bioassay system that utilizes functional/mature human heart cells derived from hPSCs to create three dimensional cardiac tissues, known as CardioSafe 3D™, is designed to be vastly more precise and expedient than extant surrogate safety models.

VistaGen recently reported (Apr 10) some big news in this area that will no doubt lead to key partnerings in future, as the company has become a member of the renowned public-private medical product cardiac safety research organization, the Cardiac Safety Research Consortium (CSRC), which was created back in 2006 via the FDA’s Critical Path Initiative MoU with Duke University. Since inception, the CSRC has come to be known as a driving force in public health and cardiac safety among the wide range of academic, governmental, and industrial stakeholders in the biopharma space which it engages in the support of these ends.

President of VSTA and the company’s CSO, Ralph Snodgrass, Ph.D., underscored the significance of mounting cardiac safety concerns associated with new drug candidates and the importance of identifying complications prior to human studies, further emphasizing that these concerns are the very internal mechanism which drives VSTA itself. Snodgrass also pointed to the key area of proarrhythmia safety, a serious and not infrequent complication in antiarrhythmic drugs where they actually provoke new arrhythmia (or a marked spike in the frequency of a preexisting arrhythmia), as being a primary target. Professor of Medicine at Duke and CSRC Co-Chair, Mitchell Krucoff, MD, FACC, hailed the start of a long and productive relationship with VSTA, noting the company’s commitment to proactive cardiac safety and how their membership strengthens the CSRC as well.

VSTA has winning technology here, with their ability to create a 3D bioassay that can be used to rapidly assess and benchmark new drugs, offering levels of detail and accuracy that make existing animal models or mere in-vitro cell culture approaches look like the antiquated technologies that they really are. The long-term potential for VSTA to prove up Drug Rescue Variants is enhanced by being able to make strategic connections through the CSRC membership and this relationship will help throw a spotlight on the compelling advantages of the company’s technology for predictive toxicology and drug metabolism assays, in addition to drug rescue.

Alongside CardioSafe 3D™, VSTA has developed a second major Human Clinical Trials in a Test Tube component, LiverSafe 3D™, designed to test drug-drug interactions and provide the same kind of over-the-horizon radar system for liver toxicology. In light of prior CardioSafe 3D™ developments regarding its use as a clinically predictive system for assessing cardiac toxicity in anti-cancer drugs, especially the revolutionary new small molecule kinase inhibitors which have drawn criticism (despite other benefits) for causing cardiac events not detected during drug development, this latest news about the CSRC membership is very bullish for VSTA and investors should keep an eye on the company as the broader biotech sector trims.

More info on this pioneering biotech developer is available at www.VistaGen.com

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Paycom Software, Inc. (PAYC) Provides Unique Set of Streamlined Human Capital Management Services

Paycom Software is an Oklahoma City-based provider of cloud-based software for human capital management, such as payroll, talent acquisition, payroll, and human resources. The company’s technology encompasses a suite of products within a single application with payroll operating as its system of record.

Once a candidate’s information is entered via online application, Paycom clients can run tax credit checks and background checks as well as the “on-boarding process” without re-entering the candidate’s information. Through employee self-service, new hires can complete their W-4s and I-9s, which can be automatically checked with E-Verify®. Employees can also use the self-service portal for a variety of tasks, such as to clock in and out, submit online timesheets, check their paid-time-off accruals, and make time off requests. The employees can also access pay vouchers, submit expenses, enroll in benefits, and access performance reviews.

The design of the technology is to help businesses streamline their employment processes and eliminate redundant data entry through a single database. Paycom’s client base includes businesses engaged in manufacturing, franchise, medicine, restaurants, education, non-profit, distribution, grocers, dealerships, and more.

Business owners benefit from automatically populated payroll that includes benefit deductions, expense reimbursement amounts, and any other approved changes made in the system, such as changes to pay scale or position or status changes. Additionally, when a qualifying event such as employee termination is entered into the system, the required COBRA action is triggered automatically to keep the business in compliance.

To foster continued growth, Paycom today launched its initial public offering (IPO) for inclusion to the New York Stock Exchange. The company plans to raise $100 million through the sale of 6.6 million shares priced between $18 and $20 a piece.

For more information, visit www.paycom.com

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Lombard Medical Technologies (EVAR) Flagship Product Meets Unmet Need in Treatment of Abdominal Aortic Aneurysms

Lombard Medical Technologies is a medical technology company specializing in developing, manufacturing, and marketing endovascular stent-grafts to repair aortic aneurysms. The company’s lead product, Aorfix™, is the only abdominal aortic aneurysm (AAA) stent-graft approved by the U.S. FDA for the treatment of AAAs with angulation of up to 90°at the neck of the aneurysm.

AAAs are the 13th leading cause of death in the United States and the 10th leading cause of death in U.S. men aged 65 years and older. Current treatment options involve invasive open surgical repair, or less invasive endovascular aortic repair (EVAR). Medtech Ventures pegs the global EVAR market at approximately $1.4 billion in 2013, with the U.S. market estimated at approximately $680 million.

“Tortuous anatomy” affects roughly 20-30% of patients suffering from AAA; Aorfix is specifically targeted at this segment of the market. In contrast to rigid design of competitor products, Aorfix has a coil design that provides flexibility for use in patients with tortuous anatomies that cannot be satisfactorily treated with other licensed stent grafts. In addition, competitor products are typically only licensed for use in aneurysms with proximal neck angulations of up to 60°. There are no EVAR devices other than Aorfix approved by the FDA to treat AAAs with high angle neck anatomy of greater than 60°.

Lombard Medical Technologies formally launched the U.S. roll-out of Aorfix in November 2013, and anticipates receiving regulatory approval to market Aorfix in Japan in 2014.

The company is also developing a stent-graft system to treat thoracic aortic aneurysms (TAAs), which are aneurysms similar to AAAs but located in the thoracic aorta. According to Medtech Ventures, the worldwide TAA market was valued at approximately $380 million in 2013, and is estimated to grow to more than $480 million by 2018.

To achieve its goal of becoming a profitable company within three years, Lombard Medical Technologies has established four key business objectives: increase commercial revenues in Europe principally through the expansion of its sales and marketing infrastructure; obtain regulatory approval for Aorfix in the U.S. and to launch the product in the U.S. with a direct sales force; expand the size range for Aorfix and make enhancements to its delivery system to ensure the product remains competitive in terms of profile and ease of use; and make operational efficiency improvements to increase capacity and improve gross margins.

Lombard Medical Technologies is listed on the London Stock Exchange under the ticker symbol “LMT.” The company today initiated its initial public offering (IPO) for listing on the Nasdaq exchange, offering 3.6 million shares priced at $15-$18 per share for a total offer amount of $75.2 million.

For more information, visit www.lombardmedical.com

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Aldeyra Therapeutics (ALDX) Develops “Traps” to Capture Disease-Causing Toxins

Aldeyra Therapeutics is a biotechnology company developing a novel drug platform of drug candidates designed to trap free aldehydes, which are naturally occurring chemical species considered to be inflammatory-inducing, toxic links to many diseases, including autoimmune, inflammatory, and neurological diseases.

Aldeyra has developed a suite of “traps” designed to capture and eliminate free aldehydes, which ideally would allow for the treatment and prevention of disease, as well as slowed progression of chronic disease. In animal testing, the company’s lead compound, NS2, was generally safe and well-tolerated topically and systemically. In a phase 1evaluation trial in human subjects, NS2 was safe and well-tolerated when administered as an eye drop.

In 2014, the company plans to initiate the following studies for NS2: phase II trials in discoid lupus, acute anterior uveitis, and ocular rosacea; a phase III trial in the rare Sjogren-Larsson syndrome; and a phase I study to test the safety of an oral formulation of the candidate. For rare diseases, Aldeyra intends to pursue orphan drug designation of its platform from the United States Food and Drug Administration (FDA).

To raise capital to fund its clinical trials and to develop additional aldehyde traps for the treatment of other diseases, Aldeyra today made its market debut on the Nasdaq exchange with a $31.3 million initial public offering (IPO) of 2.2 million shares priced at $10-$11 a piece.

“We believe there is significant unmet medical need for the therapies we intend to develop. We are not aware of any therapy that has been approved by the United States Food and Drug Administration, or the FDA, for SLS or ocular rosacea with meibomian gland dysfunction. … We believe that NS2 has the potential to be the first in class of aldehyde traps for the diseases described above and potentially for inflammatory and other diseases generally. None of our products have been approved for sale in the United States or elsewhere,” the company stated, as reported by Nasdaq.com.

For more information visit http://www.aldeyra.com

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Why Rosetta Genomics, Ltd. (ROSG) is the Leader in MicroRNA-Based Cancer Testing Services

Rosetta Genomics has developed a suite of microRNA-based diagnostics that were discovered through the company’s proprietary microRNAs and platform technologies. These technologies have made considerable headway in the medical field, demonstrating how microRNAs have the potential to accurately diagnose and classify cancer, as well as to identify the origin of metastases, or where the cancer originated in the body.

Founded in 2000, Rosetta can be credited with building the field of microRNAs, and was one of the first to demonstrate that serum microRNAs can be novel biomarkers, which are molecular “flags” indicative of a biological state or condition. Thus far, the company has discovered more than 300 biologically validated novel human microRNAs.

This discovery is significant, considering that microRNAs have already demonstrated potential to revolutionize cancer diagnostics. The company has also identified microRNAs’ central role to a host of other conditions, including autoimmune and inflammatory diseases, cardiovascular diseases, diabetes and obesity, infectious diseases, and neurological disorders.

Rosetta’s technologies are packed into an intellectual property portfolio that currently consists of 33 issued patents, two allowed patents, and 46 patent applications. Building on this strong patent position and proprietary platform technologies, Rosetta is working to apply these technologies in the development and commercialization of a full range of microRNA-based diagnostic tools.

Rosetta currently has four revenue-generating microRNA-based diagnostic tests targeting: cancer origin; lung cancer; kidney cancer; and mesothelioma, a form of cancer most commonly found in the chest and abdomen, generally connected to asbestos exposure.

• The Rosetta Cancer Origin Test™ accurately identifies the primary tumor type in primary and metastatic cancer by measuring the expression levels of 64 microRNAs, which are then processed through the company’s proprietary algorithm. The test results can accurately identify the origin of the patients’ tumor for 49 cancer origins with 85% sensitivity and 99% specificity. By determining cancer origin, clinicians can better diagnose patients and determine optimal treatment options.

• The Rosetta Lung Cancer Test™ accurately identifies the four main subtypes of lung cancer: squamous Non-Small Cell Lung Cancer (NSCLC), non-squamous NSCLC, Small Cell Lung Cancer or carcinoid. The test is based on the expression level of eight microRNAs extracted via cytological procedures such as fine-needle aspiration (FNA), bronchial brushing and washing, and biopsy sample.

• The Rosetta Kidney Cancer Test™ uses 24 microRNAs to accurately classify the four most common kidney tumors: Clear cell RCC, Papillary RCC, Chromophobe RCC, and benign Oncocytoma. A validation set of 201 independent samples was classified using the test and analyzed blindly. The test produced results for 92% of the samples with an accuracy of 95%.

• The Rosetta Mesothelioma Test™ leverages the high specificity of microRNAs as biomarkers to differentiate mesothelioma, a malignant tumor connected to asbestos exposure, from carcinomas in the lung and pleura, a medically and legally important differential diagnosis. Distinguishing between the two conditions is vital, and allows for specific and treatment regimens for each condition. Currently there is no other single diagnostic test that is conclusive for this differentiation.

Cancer obviously isn’t constrained by geological boundaries, and to capture its portion of the global diagnostics market Rosetta offers its four commercial-stage oncology tests in multiple countries around the world; implemented a global comprehensive sales and marketing effort for its cancer origin test; obtained Medicare and private pay coverage for the origin test; initiated a master service provider agreement with a global biopharmaceutical company; and plans to execute collaboration deals with additional pharma/biotech and Dx companies.

In 2013, Rosetta raised more than $3 million in financing and at year-end reported more than $20 million in cash, which the company says is enough to fund operations well into 2015. Furthermore, the company has no debt.

These factors position Rosetta with room to leverage microRNAs as stable, sensitive, and specific markers, and to advance and develop multiple diagnostic programs in cancer and for various other indications to enable accurate diagnosis and targeted treatment. The company’s current product pipeline consists of programs in various stages of development and/or marketing: thyroid neoplasia, the company’s lead product with launch expected in 205; bladder, ovarian and breast cancers; heart failure, kidney rejection; Alzheimer’s disease; and cytomegalovirus (CMV) therapeutics.

For more information visit www.rosettagenomics.com

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Phibro Animal Health Corp (PAHC) Plays Key Role in Maintaining Nation’s Food Supply

Phibro Animal Health Corp., based in Teaneck, NJ, is one of the world’s leading animal health companies, focused on helping to meet the growing demand for animal protein. They provide livestock producers with a broad range of products and solutions to help maintain and enhance the health and productivity of animals. Stock covered includes beef and dairy cattle, poultry, swine, and even aquaculture. Their products are designed to prevent and treat diseases, as well as improve nutrition.

The company has over 1,100 employees, serving over 2,800 customers globally, and generates net sales in excess of $650 million. They operate in three business segments: Animal Health, Mineral Nutrition, and Performance Products.

• Animal Health – Phibro develops, produces, and markets more than 550 products, including antibacterials, anticoccidials, nutritional specialty products, and vaccines.

• Mineral Nutrition – Phibro makes more than 450 formulations and concentrations of trace minerals, such as zinc, manganese, copper, and iron, to fortify daily feed requirements.

• Performance Products – Phibro makes various specialty ingredients for use in personal care, automotive, industrial chemical, and chemical catalyst industries.

In a press release, the company announced that it has commenced an initial public offering of 11,765,000 shares of its Class A Common Stock, with an estimated price range for the initial public offering of $16 to $18 per share. Phibro has applied to list its Class A Common Stock on The Nasdaq Global Select Market under the symbol “PAHC.”

For additional information, visit www.PAHC.com

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Enable Midstream Partners, Lp (ENBL) Provides Critical Infrastructure Assets for America’s Fossil Fuel Industry

Oklahoma City based Enable Midstream is a publicly traded limited partnership, formed in May 2013. The company owns, develops, and operates strategically located natural gas and crude oil infrastructure assets in major producing basins. Using these assets, the company provides comprehensive services to gather, process, transport, and store primarily natural gas in the south central U.S.

Enable Midstream’s functional assets include the following:

• 11,000 miles of gathering lines
• 12 major processing plants, for approximately 2.1 million cubic feet per day
• 7,900 miles of interstate pipelines, for 8.4 billion cubic feet per day transport capacity
• 86.5 billion cubic feet of natural gas storage capacity

In a press release, the company announced the pricing of 25,000,000 common units representing limited partner interests at a price to the public of $20.00 per common unit. The common units began trading today on the New York Stock Exchange under the symbol “ENBL.” The offering is expected to close April 16, 2014, subject to customary closing conditions.

For additional information, visit the company’s website at www.EnableMidstream.com

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TinyGems – A Portal to Innovation and Growth

Small companies offer the highest possible potential returns, as a matter of scale, since it is far easier for a company with $10 million in sales to double its revenue, than for a business with $10 billion in sales. Most of the innovation introduced in the private sector is through small-cap companies, and innovation is not only a target for investment but a fuel for overall economic growth. Matter of fact, in 2010, the Kauffman Foundation published a report that showed that without fast growing, early stage companies, job growth would have been negative in America for the past 35 years. According to the National Venture Capital Association, 92% of the job creation that occurs with small businesses is after their initial public offering and they are already trading.

It can well be argued that large-cap companies are net job destroyers. For example, when a Wal-Mart moves into a neighborhood, studies have shown that even after the initial hiring of new employees, once the store is in place, the community has 15% fewer jobs. Large cap companies are more likely to offshore jobs to a third world nation to cut labor costs. Profits are less likely to go into developing new facilities to create jobs. Over the past ten years, the companies in the favored large cap index, the S&P 500, spent over $3 trillion buying back shares of stocks. This benefits the stock options of their CEOs and the hedge funds that trade the majority of their shares, as it shrinks stock supply to raise valuation. However, those were funds that could have been placed into retained earnings, used to innovate, and create jobs.

Small-cap companies can provide the highest rewards to shareholders, and yet they get the least respect. Last year was considered an exceptional year for initial public offerings with over $60 billion dollars raised. Yet, the average day of trading volume on just the New York Stock Exchange alone is over $110 billion. Innovation and growth is highly valued, yet how Wall Street allocates capital is questionable at best.

With well over 20,000 companies that publicly trade, 80% of Wall Street analysts follow a mere 20% of the largest companies. So the burden of research is placed on you, the individual investor.

To help guide you through the vast forest of small companies, TinyGems provides exceptional growth ideas and aid in the research process to building a portfolio of successful small cap stocks.

For more information, visit www.TinyGems.net

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Zoe’s Kitchen, Inc. (ZOES) Offers Mediterranean Diet for Health Conscious Consumers

Zoe’s Kitchen, based in Plano, Texas, was founded in 1995 as a fast casual restaurant concept serving a distinct menu of fresh, Mediterranean-inspired dishes, based upon family recipes, made from scratch daily and delivered with Southern hospitality. The emphasis is on nutrition and freshness, appealing to the growing demand for healthier foods, with a special focus on the popular Mediterranean diet. As such, their offerings include plenty of fruits and vegetables, along with fish and anti-oxidant rich olive oil. Their informal motto is: “If it wasn’t food 100 years ago, it isn’t food today”.

The company offers franchise opportunities, which has accelerated growth. Today they have over 110 locations in 15 states, primarily covering the southern half of the country, but as far north as Pennsylvania. The company is led by CEO Kevin Miles, recognized in both Nation’s Restaurant News and Fast Casual magazine highlighting him as “Top 10 Executives to Watch” and “Top Movers and Shakers”.

In a press release, the company announced the pricing of its IPO of 5,833,333 shares of common stock at a price to the public of $15.00 per share. The shares began trading today on the New York Stock Exchange under the ticker symbol “ZOES.” The closing of the offering is expected to occur on April 16, 2014, subject to the satisfaction of customary closing conditions.

For additional information, visit www.ZoesKitchen.com

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