Syros Pharmaceuticals, a US-based genomic medicine developer that counts medical research contractor WuXi PharmaTech as an investor, raised $50m in its initial public offering yesterday.
The company priced four million shares at $12.50 each, below the $14 to $16 range it set last week. The IPO’s underwriters have the 30-day option to buy another 600,000 shares, which would lift the size of the offering to $57.5m.
Syros is working on drug treatments that would combat cancer and immune-mediated diseases by controlling the activation and repression of genes. Its lead product candidate, SY-1425, is being developed to treat acute myelogenous leukaemia and relapsed high-risk myelodysplastic syndrome.
The IPO proceeds will support a proof-of-concept phase 2 clinical trial of SY-1425 expected to start imminently, as well as a phase 1 trial for acute leukaemia treatment SY-1365 slated to begin in early 2017, and additional research activities.
Syros had raised approximately $125m in venture funding since it was founded in 2011. WuXi PharmTech’s Corporate Venture Fund took part in its $30m series A round alongside Flagship Ventures and Arch Venture Partners in 2013.
The same three investors were joined by Alexandria Venture Investments, the venture capital arm of life sciences real estate company Alexandria, Polaris Partners, Aisling Capital and Redmile Group for a $53m series B round in late 2014.
WuXi Healthcare Ventures, Wuxi PharmaTech’s newer corporate venturing unit, then invested in a $40m series C in January 2016 together with Alexandria Venture Investments, Redmile, Polaris, Aisling, Deerfield Management, Fidelity Management and Research, and Casdin Capital.
WuXi PharmaTech’s 5.7% stake has been diluted from 5.7% to 4.7% in the offering. The company has invested a total of $9m in Syros, according to the IPO filing.
Other notable shareholders post-IPO include Flagship (19.4%), Arch Venture (18.6%), Fidelity (8.1%), Deerfield (7.4%) and Polaris (5.2%).
Cowen and Company and Piper Jaffray are joint book-running managers for the IPO. JMP Securities is lead manager, while Wedbush PacGrow is co-manager.