US-based cancer therapy developer Corvus Pharmaceuticals, backed by pharmaceutical firms Roche and Novo, is looking to price 4.7 million shares at between $15 and $17, raising up to $80m when it floats on Nasdaq.
The amount is lower than the $115m that it had originally targeted when it filed for an IPO in January 2016.
Established in 2014, Corvus is developing immuno-oncological treatments that use the body’s own immune system to treat cancer cells. The company currently has four programs in its pipeline, one of which is currently in a phase 1 clinical trial.
Corvus plans on using half of the proceeds to support the ongoing clinical development of that lead drug candidate, including a phase 1/1b trial. The other $40m will support further preclinical development of the remaining pipeline and potential in-licensing, as well as working capital.
Corvus obtained obtained $33.5m in a 2014 series A round led by OrbiMed Advisors. Novo Ventures, an investment subsidiary of Novo, and Adams Street Partners also contributed funds to that round.
Roche joined the company’s shareholders as part of a $75m series B round in September 2015, investing through its corporate venturing unit, Roche Venture Fund.
The series B was led by Rock Springs Capital Management and also featured Novo Ventures, OrbiMed, Adams Street, Fidelity Management and Research Company, Blackrock, T. Rowe Price, Jennison Associates, Cormorant Asset Management, Sphera Funds Management, VenBio Select and Cowen Private Investments.
Although Novo’s share will be reduced from 15.8% to 15.25%, the regulatory filing reveals that the company will purchase an additional 625,000 shares as part of the offering.
Corvus’ largest shareholder OrbiMed will also purchase an additional 750,000 shares and will see its stake go from nearly 30% to 26.75%. Adams Street will acquire an additional 187,500 shares and will see its stake drop from 15.8% to 13.1%.
Fidelity will maintain its current number of shares and see its stake drop from 8.2% to 6.3%. Roche’s share total, sized at less than 5%, is not listed in the filing.
Credit Suisse Securities, Cowen and Company, Guggenheim Securities, BTIG and Cantor Fitzgerald are serving as underwriters for the offering. They have been granted a 30-day option to purchase up to a total of 705,000 additional shares.