Kura Oncology, a US-based biopharmaceutical company focused on the treatment of tumours and backed by financial services conglomerate Fidelity Management and Research, floated on Nasdaq yesterday raising $50m.
The company issued 6.25 million shares priced at $8 each, having previously planned to sell 3.75 million shares at $16 for a total of $60m.
Share value dropped to $7.84 by closing time and remain there as of the time of writing.
Kura is developing therapies for solid tumours and blood cancers. Its lead drug candidate, tipifarnib, is currently undergoing two phase 2 clinical trials, one for tumours and one for T-cell lymphoma, a type of blood cancer.
The proceeds from the offering will fund a third phase 2 clinical trial for tipifarnib, development of a preclinical candidate, creation of a diagnostic programme to select patients most likely to respond to the company’s treatments, and research and preclinical development of other drug candidates.
Kura raised $91.7m in funding in a March 2015 round, according to a regulatory filing.
Fidelity, EcoR1 Capital and Arch Venture Partners all hold more than 5% in the company, though further details have not been revealed.
Citigroup and Leerink Partners are acting as joint book-running managers, while JMP Securities and Oppenheimer are serving as co-lead managers. The underwriters have been granted a 30 day option to purchase up to an additional 937,500 shares.