US-based dermatological disease treatment developer Krystal Biotech filed on Monday to raise up to $34.5m in an initial public offering that will allow pharmaceutical company Sun Pharmaceutical Industries to exit.
Founded earlier this year, Krystal is working on gene therapy treatments for rare or orphan dermatological diseases. Its preclinical lead drug candidate, KB103, is being developed to treat a rare genetic disease called dystrophic epidermolysis bullosa.
The IPO proceeds will support development of KB103, hopefully through the submission of an investigational new drug application and the completion of phase 1/2 clinical studies.
Additional capital will be used to advance a second candidate, KB104, which will treat a congenital skin disease known as Netherton Syndrome, and to research possible treatments for ichthyosis vulgaris, psoriasis, atopic dermatitis and chronic wounds using Krystal’s platform.
A report earlier this month stated India-headquartered Sun Pharma was set to invest $7m in the company in return for a 15.9% stake. However, the IPO filing indicates it holds 16.5% of Krystal, which raised approximately $11.3m in funding according to a securities filing on Friday last week.
Chief executive Krish S. Krishnan and chief operating officer Suma M. Krishnan are the only other shareholders with a significant stake in Krystal, each of them owning a 34.1% share of the company.
Ladenburg Thalmann is the sole book-running manager and underwriter for the planned offering, which is set to take place on the Nasdaq Capital Market board.