US-based biopharmaceutical company Ardelyx set the range for its initial public offering between $13 and $15 on Monday and is set to issue 3.6 million shares when it floats. The IPO will generate between $46.8m and $54m.
Founded in 2007, Ardelyx develops small molecular treatments for cardiorenal, gastrointestinal and metabolic diseases. It raised $59.5m in equity over two rounds in 2008 and 2011 respectively, and $5m in debt financing in 2010.
Amgen Ventures, the corporate venturing unit owned by pharmaceutical company Amgen, invested in Ardelyx’s $30m series B round in 2011 and currently holds a 6% stake that will be diluted to 4.7% after the offering.
Ardelyx’s two largest shareholders are New Enterprise Associates, which holds a 45.9% stake that will be diluted to 36.1% after the offering, and CMEA Ventures, which owns a 28.7% share that will dilute to 22.6%.
The IPO proceeds will be used to support development of preclinical product candidates, and possibly to co-fund Phase 3 clinical studies for its preclinical Tenapanor drug in order to secure a greater share of royalties payable from pharmaceutical company and partner AstraZeneca for the drug.
AstraZeneca has already made a $25m milestone payment to Ardelyx in connection with Tenapanor, in May.