Tobira Therapeutics,a US-based drug developer backed by investors including pharmaceutical company Novo, suspended its initial public offering yesterday citing market conditions.
Tobira had targeted $60m in an IPO that would have valued it at about $150m. However, several pharmaceutical companies including Auris Medical, Minerva Neurosciences and Ocular Therapeutix have floated below their ranges in an overheated market recently, which appears to have put off the company.
Founded in 2006, Tobira is developing treatments for liver disease, HIV, fibrosis and inflammation. Its lead drug candidate, CVC, is an immunomodulator that could be used to treat several diseases.
Tobira raised approximately $62m in venture funding over two rounds, including a $31m series B round led by Novo in 2010.
Novo is Tobira’s fourth largest shareholder, with a 17.2% stake which would have been diluted to 10% through the IPO. Its three largest shareholders are Domain Associates, which owns a 33.4% share, Frazier Healthcare Associates (25.3%) and Montreux Equity Partners (17.5%).