NuPathe, a US-based drug developer focused on the central nervous system, has cut its Nasdaq stock exchange flotation price from $14 to $16 per share to $10.
It still plans to offer five million common shares with existing shareholders expected to buy up 1.5 million at the initial public offering (IPO). A further 750,000 shares can be issued as an over-allotment by underwriters Leerink Swann and Lazard after the flotation on August 11. The money will be used to start making its Zelrix drug, pending regulatory approval.
NuPathe has previously raised $53m in venture funding, including strategic investments from Safeguard Scientifics and drugs peer GlaxoSmithKline’s corporate venturing unit, SR One.
Safeguard will cut its stake from 24% to 15.8% and SR One from 9.7% to 6.35% after the IPO.
US-listed medical technology company Safeguard Scientifics previously saw its portfolio company Clarient list in 1997, and the company is still chaired by SafeGuard’s life group head, James Datin.
NuPathe’s major venture capital investors are Quaker BioVentures (29.2% pre-IPO, down to 19.2%), Birchmere Ventures (12.5% to 8.2%) and Battelle Ventures (12% to 7.9%).