Novartis-backed biopharmaceutical company Tokai Pharmaceuticals filed for an initial public offering on Monday that could raise up to $75m.
Founded in 2004, US-based Tokai is developing treatments for prostate cancer and other hormonally-driven diseases. Its lead product candidate, Galeterone, is a small molecule drug to combat prostate cancer.
The proceeds from the offering will fund a pivotal clinical trial of Galeterone, while additional cash has been earmarked for an ongoing Phase 2 trial of the drug, as well as initial research of additional compounds.
Pharmaceutical company Novartis holds a 28.1% stake in Tokai. The largest shareholder is venture capital firm Apple Tree Partners, which owns a 49.1% stake, while Sutter Investment Management holds 10.6%.
Tokai has raised approximately $102m in venture funding, according to SEC filings and press releases. Novartis first invested in Tokai as the lead investor in a 2009 series D round in which Tokai secured $22m.
Apple Tree has been an investor in the company since a 2007 round that also featured Queensland BioCapital Fund, and which raised $11.7m.
BMO Capital Markets, Stifel and William Blair are the joint bookrunners for the IPO, while Janney Montgomery Scott is also acting as an underwriter.