US-based, corporate-backed immunotherapy developer CytomX Therapeutics set the range for its forthcoming initial public offering at $14 to $16 yesterday and could raise up to $122.7m when it floats.
CytomX will initially issue almost 6.7 million shares, which would raise approximately $107m if it floats at the top of its range, and the underwriters will have a 30-day option to buy an additional 1 million shares. It initially filed for a $100m IPO earlier this month.
Pharmaceutical firms and collaboration partners Pfizer and Bristol-Myers Squibb will buy $5m and $10m worth of stock in the IPO respectively.
The company is developing a range of antibody-based cancer treatments using its Probody technology platform. Between $25m and $35m of the IPO proceeds will support Phase 1 clinical trials and manufacturing of its lead product candidate, CX-072.
CytomX intends to invest between $15m and $20m to advance another candidate, CD-166, through Phase 1 trials. Up to $35m has been earmarked for research and development activities, including the further development of the Probody platform.
Pfizer currently holds a 5.7% stake in CytomX that is set to be reduced slightly to about 5.5% through the offering while Roche Finance, a subsidiary of pharmaceutical company Roche, will have its stake diluted from 6.7% to 5.5%.
The company’s other shareholders include venture capital firm Third Rock Ventures, which will hold a 24.8% stake post-IPO, as well as Canaan Partners (14%) and Fidelity Management and Research (7%).
BofA Merrill Lynch, Jefferies and Cowen & Company are the joint bookrunners for the IPO, while Oppenheimer is also acting as an underwriter.
CytomX has raised approximately $165m in venture funding, including $41m in a Roche-backed series B round in 2012 and a $20m series C led by Pfizer Venture Investments, a corporate venturing subsidiary of Pfizer, in January this year.
Other past 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.