US-based biopharmaceutical company ZS Pharma has filed for an initial public offering that could raise up to $86.25m.
Novo Ventures, the corporate venturing unit of healthcare company Novo, led a $55m series D round for ZS in March this year, and the company has raised approximately $108m since it was founded in 2008.
However, Novo still owns less than 5% of ZS Pharma’s shares. Its largest shareholder is venture capital firm Alta Capital, which led the company’s $46m series C round in 2012 and which holds 22.9%.
Other notable shareholders are Devon Park Bioventures (17.9%) and 3×5 Special Opportunity Fund (16.6%), while past investors include RA Capital Management, Adage Capital Management, Sofinnova Ventures, Salem Partners and RiverVest.
ZS Pharma is developing drugs to treat kidney, cardiovascular, and liver disorders. Its lead candidate, ZS-9, is a treatment for hyperkalemia, which is a metabolic disease where extremely high potassium levels can lead to death.
The proceeds from the offering will be used to advance the company’s clinical programme, and in particular to secure regulatory approval and scale up its manufacturing capabilities for ZS-9.
J.P. Morgan Securities LLC and Credit Suisse Securities (USA) are serving as joint book-running managers of the IPO, while BMO Capital Markets and William Blair & Company are also acting as underwriters.