AAA Syndax repeats IPO experiment

Syndax repeats IPO experiment

US-based biotechnology developer Syndax Pharmaceuticals filed for an $86.25m initial public offering on Nasdaq yesterday that would provide an exit to investors including financial services conglomerate Fidelity Management and Research.

Founded in 2005, Syndax is working on an orally administered treatment, named Entinostat to treat various types of cancer that have shown to be susceptible to immunotherapy, such as lung cancer, melanoma and breast cancer.

The company previously filed for a $60m initial public offering in June 2014 but withdrew in January 2015, subsequently closing an $80m series C round in August 2015 co-led by Fidelity and Delos Capital Fund.

The round was also backed by EcoR1 Capital, OrbiMed, Jennison Associates, Tavistock Life Sciences, Arrowpoint Partners, Cormorant Asset Management, BioMed Ventures, Domain Associates, MPM Capital, RusnanoMedInvest (RMI), Forward Ventures and unnamed additional funds.

Syndax previously raised $75.6m from Domain, MPM, Forward, RMI, Avalon Ventures and Pappas Ventures. Syndax also secured $11m in debt financing.

The company hopes to use the proceeds to support several clinical trials of Entinostat, and to file a new drug application with regulator the US Food and Drug Administration.

Fidelity holds a 11.2% stake in Syndax, while the company’s largest external shareholder is Domain with a 19.6% stake. MPM holds 16.7%, Delos owns 9.1%, RMI 7.5% and BlackRock 5.5%.

Morgan Stanley and Citigroup are acting as joint book-running managers. while JMP Securities and Oppenheimer are also serving as underwriters.

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