US-based immuno-oncology drug developer Arcus Biosciences has filed to raise up to $100m in an initial public offering that will allow corporate investors Alphabet, Novartis, Celgene and Taiho to exit.
Arcus is working on small-molecule and antibody immunotherapies aimed at biological pathways that scientific evidence has suggested play a part in regulating the body’s immune response to cancer.
The proceeds will support the ongoing clinical development of the company’s lead product candidate, AB928, and another candidate, AB122, as well as work on two more candidates, AB680 and AB154, both of which are expected to enter the clinic this year.
Arcus has raised $227m in funding in total, most recently securing $107m in a November 2017 series D round featuring internet technology group Alphabet and pharmaceutical companies Taiho and Celgene, the former two investing through their GV and Taiho Ventures units.
The series D also included Wellington Management, EcoR1 Capital, BVF Partners, Decheng Capital, Hillhouse, Aisling Capital, Column Group, Foresite Capital, Invus Opportunities, Droia Oncology Ventures and entities affiliated with Leerink Partners.
Arcus had closed a $49.7m series A round in 2015 backed by Celgene and fellow pharmaceutical firm Novartis, Foresite, Column Group and assorted friends and family. It added $70m from GV, Taiho Ventures, Droia, Invus and Stanford University the following year.
GV, which invested $25m to lead the 2016 round and $22.5m in the 2017 round, is the company’s largest shareholder, owning a 14.3% stake. Its next biggest investors are Column Group (10.1%) and Foresite (9.8%).
Citigroup Global Markets, Goldman Sachs and Leerink Partners are joint book-running managers for the IPO, which is set to take place on the New York Stock Exchange.