May 6 (Bloomberg) -- Alcobra Pharma, an Israeli company developing an oral medicine with reduced side effects to treat attention deficit hyperactivity disorder, filed to raise as much as $27.3 million in a Nasdaq initial public offering.
Alcobra plans to sell 2.27 million shares in a price range of $10 to $12 a share to fund work on the drug, according to a filing on the U.S. Securities and Exchange Commission website. Aegis Capital Corp. was hired as sole bookrunner while Sunrise Securities Corp. is co-manager.
ADHD affects 3 percent to 5 percent of school-age children, mostly boys, according to the National Institutes of Health. Alcobra said that, in contrast to most current amphetamine medications with “significant” side effects, the Tel Aviv-based drugmaker’s MG01CI treatment showed no detectable changes in appetite, sleep patterns or mood in a mid-stage clinical study in 120 adults.
The market for pharmaceutical treatments for ADHD in 2012 is estimated to exceed $3.8 billion in the U.S., Alcobra said. The company plans to use the proceeds of the stock sale to finance two advanced-stage trials in the U.S. estimated to cost $6 million each, it said.
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