AAA Conkwest aims to plunder $173m in IPO

Conkwest aims to plunder $173m in IPO

Conkwest, a US-based immunotherapy company that counts pharmaceutical firm Sorrento Therapeutics among its investors, filed for a $172.5m initial public offering on Nasdaq on Friday.

Founded in 2002 as ZelleRx, Conkwest is working on immunotherapy treatments for cancer, infectious diseases and inflammatory diseases.

The proceeds from the offering will support Phase 1 and 2 clinical trials for drug candidates covering Merkel cell carcinoma, solid tumours, acute myeloid leukaemia and solid tumour haematological cancers, and to establish a manufacturing facility.

Conkwest has raised about $66m in funding, according to regulatory filings. Oncology company Sorrento holds an 8.5% share of Conkwest, after investing $11m in the company in December 2014 in conjunction with the signing of a collaboration agreement.

Conkwest CEO Soon-Shiong is the company’s largest shareholder, and owns a 61.6% stake through his Cambridge Equities vehicle after investing $47.5m in December 2014, while other shareholders include the Bonderman Family (6.8%) and chief operating officer Barry J. Simon (5%).

Merrill Lynch, Pierce, Fenner & Smith, Citigroup Global Markets, Jefferies and Piper Jaffray are joint book-running managers for the offering.

– Image courtesy of Conkwest, Inc.

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