Novo and Johnson & Johnson-backed biopharmaceutical company CymaBay Therapeutics, has filed for an initial public offering of up to $30m.
Formed in 1988 as Transtech Corporation and seeded with $120m worth of assets of another metabolic disease company, CymaBay develops treatments for metabolic and rare diseases, and its lead product candidate, Arhalofenate, is intended to treat gout. It has raised more than $165m in funding since 2002, according to its press announcements and SEC filings.
Johnson & Johnson Development Corporation (JJDC), the corporate venturing arm of healthcare conglomerate Johnson & Johnson, is the company’s third largest shareholder, owning 8.54%, behind venture capital firms Alta BioPharma and Versant Venture Capital, which each hold 11.08% stakes.
Other investors include Novo Ventures, the corporate venturing subsidiary of Denmark-based healthcare company Novo, Deerfield Funds, KBC Group, Venrock, Pictet Private Equity Investors, Bay City Capital, VantagePoint Capital Partners, Biotech Turnaround Fund, Merlin Biomed, Birchmere Ventures and T. Rowe Price.
Cymabay plans to invest $15-20m of the proceeds in developing Arhalofenate and its second candidate, MBX-8025. The company made a $11.3m net loss in 2013 from revenues of $3m, and had run up a deficit of almost $349m from research and development and administrative expenses by the end of last year.
Cowen and Company, Stifel, Nicolaus & Company, Roth Capital Partners and National Securities Corporation are acting as underwriters for the offering.