Surface Oncology, a US-based immuno-oncology drug developer backed by pharmaceutical firms Eli Lilly, Amgen and Novartis, has filed to raise up to $75m in an initial public offering.
Surface is working on therapeutics that will treat cancer by targeting the immunosuppressive tumour microenvironment. The IPO proceeds will support a phase 1 clinical trial for its lead drug candidate, SRF231, and more general research and development.
Novartis owns a 16% stake in Surface through its Novartis Institutes for Biomedical Research subsidiary, having invested $13.5m in the company in January 2016 as part of a strategic collaboration deal.
Surface has received $105m in upfront and milestone payments from Novartis through the agreement, which also granted the company the right to require up to $11.5m in financing from Novartis through a concurrent private placement in the event of an IPO.
Eli Lilly’s corporate venturing unit, Lilly Ventures, had led the company’s $35m series A round, which included Novartis Institute for Biomedical Research and Amgen Ventures, the strategic investment arm of Amgen, the previous year.
Seed investor Atlas Venture, Fidelity subsidiary F-Prime Capital Partners and New Enterprise Associates (NEA) co-led the 2015 round with Lilly Ventures, and angel investor Elliott Sigal also contributed.
Atlas Venture is Surface’s largest investor, with a 23% stake, while other notable shareholders include Lilly Ventures, NEA (16% each) and F-Prime (10%).
The underwriters for the offering, which is set for the Nasdaq Global Market, are Goldman Sachs, Cowen and Company and Evercore Group.