Syndax Pharmaceuticals, an oncology treatment developer that counts financial services group Fidelity Management and Research among its investors, raised $52.8m when it floated on Nasdaq yesterday.
The company priced 4.4 million shares at $12.00 each, below the $14 to $16 range it set last month.
Syndax is developing an oral, small-molecule drug treatment called Entinostat for cancers including lung cancer, melanoma, ovarian cancer and triple-negative breast cancer. The IPO proceeds will support phase 2 and 3 clinical trials and a New Drug Application for the drug for Entinostat.
The IPO follows approximately $155m of venture funding including an $80m series C round co-led by Fidelity and Delos Capital Fund in August 2015 that included EcoR1 Capital, OrbiMed, Jennison Associates, Tavistock Life Sciences, Arrowpoint Partners, Cormorant Asset Management, BioMed Ventures, Domain Associates, MPM Capital, RusnanoMedInvest (RMI) and Forward Ventures.
Fidelity paid $8m for 665,000 shares in the offering, boosting its stake on Syndax from 11.2% to 12.2%. Investment manager BlackRock bought 550,000 shares for $6.6m, increasing its share in the company from 5.5% to 7.3%.
Domain Associates remains Syndax’s largest shareholder despite its stake being diluted from 19.6% to 14.6%. Other notable shareholders include MPM Capital (a 12.5% stake post-IPO), Delos (6.8%) and RMI (5.6%).
Morgan Stanley and Citigroup served as joint book-running managers for the IPO, with JMP Securities and Oppenheimer co-managers. The underwriters have 30 days to buy an additional 660,000 shares which would boost the size of the IPO to $60.7m.