Canada-based oncology biotherapeutics developer Zymeworks filed on Monday to raise up to $75m in an initial public offering in the US that will give pharmaceutical companies Eli Lilly, Celgene and EMS exits.
Zymeworks is developing multifunctional biotherapeutics, initially to treat cancer. Its lead product candidate, ZW25, is a dual-targeting antibody that will target a protein called HER2 that promotes growth of cancer cells.
The IPO proceeds will support a phase 1 clinical trial for ZW25 and possibly the start of phase 2 randomised studies. Additional capital has been earmarked to advance a second candidate, an antibody-drug conjugate dubbed ZW33, through phase 1 trials for cancer.
The company has raised at least $134m in venture capital, including $61.5m in a January 2016 mezzanine round co-led by BDC Capital and Lumira Capital.
The round also featured EMS, which participated through its Brace Pharma Capital subsidiary, Eli Lilly, Celgene, CTI Life Sciences Fund, Fonds de solidarité FTQ, Perceptive Advisors, Teralys Capital, Northleaf Venture Catalyst Fund and Merlin Nexus.
Eli Lilly supplied an undisclosed amount of equity financing for Zymeworks in conjunction with a $375m licensing and collaboration partnership in 2014. Celgene provided an undisclosed amount the following year as part of a collaboration and licensing deal.
Eli Lilly is Zymework’s largest shareholder, with a 17.5% stake. Other notable investors include CTI Life Sciences Fund (a 14.6% stake) and Celgene, which holds a 6.1% share through a vehicle known as Celgene Alpine Investment.
Citigroup Global Markets, Barclays Capital and Wells Fargo Securities are the joint book-running managers for the offering while Cannacord Genuity is lead manager and Cormark Securities (USA) is a co-manager.