The FINANCIAL -- ChemoCentryx Inc. reduced the expected price range and
increased the size of its initial public offering to 4.5 million shares
at $10 each.
The biopharmaceutical company said last month it expected its IPO of 4 million shares to price between $14 and $16 each.
According to London Stock Exchange, ChemoCentryx had filed IPO plans in October to sell up to an estimated $69 million of common stock to help pay for the development and research of its drug candidates.
The company develops orally-administered drugs to treat autoimmune diseases, inflammatory disorders and cancer. The company's treatments target a network of molecules that cause inflammation. Its lead independent drug candidate, CCX140, treats diabetic nephropathy, a kidney disease. The company plans to retain commercial rights to the treatment in North America but find partners for its co-development outside North America.
Principal shareholders Glaxo Group Ltd., an affiliate of GlaxoSmithKline PLC, and Techne agreed to purchase $7 million and $5 million, respectively, of ChemoCentryx's common stock in separate private placements upon the completion of the offering at a price equal to the IPO price.
It is already developing one drug with Glaxo Group. Traficet-EN, in late-stage trials, is its most advanced candidate and treats Crohn's disease.
The company reported a loss of $3.1 million and revenue of $34.9 million in 2010. For the first nine months of 2011, the company reported its loss widened to $22.8 million from the year-ago period as revenue slipped 74% to $5.6 million.
The proceeds from the IPO are expected to further develop its lead drug candidate as well as drug candidates that treat skin inflammation, brain tumors and blood inflammatory disorder. Proceeds will also be used for working capital and general corporate purposes.
It has applied for a Nasdaq Global Market listing under the symbol CCXI.
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