CytomX, a US-based immuno-oncology company backed by pharmaceutical firm Roche, floated on Nasdaq yesterday with an $80m initial public offering yesterday.
The company issued 6.67 million shares priced at $12 each, below the $14 to $16 range it set last week. CytomX is the third corporate-backed biotechnology company, after Nabriva and Mirna Therapeutics, to float below its range in the past month.
Two more pharmaceutical companies, Pfizer and Bristol Myers-Squibb, bought a combined $15m of stock in the offering, Pfizer investing $5m and Bristol Myers-Squibb $10m.
CytomX is developing antibody-based therapeutics to treat cancer. The IPO proceeds will support Phase 1 clinical trials and manufacturing for its lead product candidate, CX-072, as well as development of a second candidate, CD-166, and additional research and development activities.
BofA Merrill Lynch, Jefferies, and Cowen and Company are serving as joint book-running managers for the IPO, while Oppenheimer is acting as manager for the offering.
The underwriters have a 30-day option to acquire another one million shares, which would take the size of the offering up to $92m.
Roche held a 5.5% stake in CytomX that was diluted from 6.7% in the offering, while Pfizer, despite its investment, will retain a 5.5% stake, down from 5.7%.
Other notable CytomX investors include Third Rock Ventures, which will hold a 24.8% stake post IPO, Canaan Partners (14%) and Fidelity Management and Research (7%).
CytomX had raised a total of $165m in funding prior to the offering, including $41m in a Roche-backed series B round in 2012 and another $20m in a January 2015 series C featuring Pfizer Venture Investments, Pfizer’s corporate venturing arm.
Other investors include Casdin Capital, Cormorant Asset Management, Deerfield Management, Perceptive Advisors, Redmile Group, Tekla Healthcare Investors, Tekla Life Sciences Investors, Venrock Healthcare Capital Partners and Wellington Management Company.