US-based cancer drug developer Loxo Oncology filed for an initial public offering on Monday that could raise up to $69m.
Pharmaceutical company Array Biopharma holds 15.3% of Loxo following a July 2013 agreement in which it took an equity stake in Loxo, which is also funding Array’s preclinical cancer research.
In return Loxo will be eligible to receive up to $434m in milestone payments, and royalties, for future drugs developed under the deal.
Loxo’s largest shareholder is venture capital firm Aisling Capital, which as the company’s founding investor, holds 29%. OrbiMed Advisors, which invested in both Loxo’s $33m series A round in October 2013 and its $24m series B in May, owns 29%, while New Enterprise Associates holds 14.9%.
Lox plans to use $10m to $15m of the proceeds ito fund Phase 1 trials for its lead drug candidate, LOXO-101, and a further $20m to $25m to support research and development for a pipeline of preclinical product candidates.
Cowen & Company and Stifel are the joint bookrunners for the offering, and the other underwriters are JMP Securities and Oppenheimer & Co.