ADC Therapeutics, a Switzerland-based oncology drug developer spun off from pharmaceutical firm AstraZeneca subsidiary Spirogen, has withdrawn its initial public offering, citing adverse market conditions.
Founded in 2011, ADC is working on targeted antibody drug conjugates intended to treat solid tumours and haematological malignancies. It filed for its IPO last month and set a range of $23 to $26 for nearly 8.2 million shares.
The company planned to float on the New York Stock Exchange and would have raised more than $212m if it had priced its shares at the top of the range. Undisclosed existing shareholders had expressed interest in buying up to $115m of shares in the offering.
The IPO would have followed $531m in funding, $276m of which came in a series E round featuring AstraZeneca, private equity firm Auven Therapeutics, Redmile, Wild Family Office and undisclosed additional investors that was closed in June this year.
AstraZeneca owned 7.2% of ADC’s shares and was among the participants in a $105m round in 2016 that also featured Auven Therapeutics, which holds a 42.9% stake, Wild Family Office and unnamed new and existing backers.
AstraZeneca had joined Auven in an $80m private placement the previous year, and AstraZeneca subsidiary MedImmune had provided $20m of a $40m round also featuring Auven in 2013.
Chris Martin, ADC’s chief executive, said: “In light of adverse market conditions, we have determined it is in the best interests of our shareholders to withdraw the registration statement.
“We are fortunate to have a strong balance sheet, highly supportive investors, alternative financing options and a steady flow of forthcoming milestones, all of which factored into our decision to not proceed with an initial public offering in the current market conditions.”
