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Alexza Pharmaceuticals

Scott DeCarlo, Shlomo Reifman & Andy Stone 03.13.06

Early Stages.

Alexza Pharmaceuticals is developing promising drugs, but as with any pharma upstart there is a risk that the drugs—in this case, treatments for acute migraine headaches, panic attacks, agitation and pain—won’t pass clinical trials. Other than $6 million, mostly from government grants, the company has generated little revenue since its formation in 2000, while its accumulated losses total $77 million. Alexza has three compounds in early clinical trials, with a fourth scheduled to begin soon, and is also developing a new technology to deliver drugs. Before its public equity offering Alexza had $38 million in cash, which will help it stay afloat while it seeks Food & Drug Administration approval.

Francis Gaskins, president of IPO Desktop, cautions that unlike many successful startups in this field, Alexza has yet to tie up with a big pharmaceutical company.