US-based biopharmaceutical company Scynexis has raised the target for its forthcoming initial public offering for a second time and now aims to secure $71.3m when it goes public.
The company is set to issue 6.2 million shares priced at $10.00 each, and a further 940,000 shares could be issued to underwriters RBC Capital Markets, Canaccord Genuity and JMP Securities if they take up the option.
Scynexis, backed by GlaxoSmithKline corporate venturing unit SR One among others, initially targeted $55m when it originally filed for an IPO in February, but amended the maximum to almost $67.5m at the start of April.
Scynexis develops anti-infectives to treat a range of infections, and its lead candidate, SCY-078, is an oral and intravenous drug for life-threatening invasive fungal infections in humans.
The company plans to spend $30m of the proceeds advancing SCY-078 through Phase 2 clinical trials and initiating Phase 3 testing, and a further $15m to pay off a credit facility provided by HSBC.
Pharmaceutical company Sanofi has already committed to buying 1.5 million shares for $15m in the offering, which would make it the company’s largest external shareholder. SR One holds 193,000 shares equating to a 9.4% stake, which will be diluted to 2.3% afterwards.
However, Scynexis was careful to warn of significant risks involved with the IPO. It has already sunk $66m into drug development without any product being approved for sale and has only been able to generate minimal revenue.
Scynexis has raised $63.9m in funding since its inception, including a $13.5m round in 2008 led by Merial, a joint venture between SR One and pharmaceutical company Merck.