Topical drug maker Zars files for $86M IPO

Zars, a Salt Lake City maker of topical drugs, filed to raise up to $86.25 million in an initial offering. Its registration statement with the SEC is here, and its press release is here.

Zars specializes in topically administered drugs. It makes two dermatological anesthetics, neither of which is on the market yet. Another patch-based heat treatment for arthritis of the knee is in late-stage clinical trials, although the company doesn’t sound too optimistic about it:

ThermoProfen has completed a single Phase 2 clinical trial. In the Phase 2 trial, ThermoProfen did not demonstrate a statistically significant improvement in the primary end point of the pain subscale of the Western Ontario and McMaster Universities, or WOMAC, osteoarthritis index (a disease specific measure of health for OA) versus the control, a patch with no drug and short duration heat. We are initiating the ThermoProfen Phase 3 clinical trial program based on the positive trends in the four visual analog scale (VAS) pain measurements that were secondary endpoints of the Phase 2 trial, although the VAS pain improvement results were also not statistically significant in 118 patients.

The company does note that it will be using a higher dose of the drug in a larger patch in the phase III trial.