ZS Pharma looks to $86M IPO to fund PhIII hyperkalemia studies

ZS Pharma is executing a familiar biotech gambit. The Texas-based biotech raised $55 million from some top venture groups just a few weeks ago, and now it's formally moving ahead with an $86 million IPO.

ZS Pharma's main claim to fame is ZS-9, a hyperkalemia drug that is engaged in a late-stage research program designed to get it into the hands of regulators in the U.S. and Europe next year. And with practically all of its eggs in one experimental drug basket, the boilerplate warnings regarding the potential for failure are extensive.

Hyperkalemia is characterized by high levels of potassium in the blood that can lead to cardiac arrhythmias and sudden cardiac death.

The biotech's S-1 lays out a simple game plan: Land approvals and then launch commercialization efforts itself. ZS believes that a specialty sales force could effectively reach out to 5,000 practicing nephrologists and approximately 15,000 practicing noninterventional cardiologists.

ZS isn't the only biotech in this R&D space. Redwood City, CA-based Relypsa ($RLYP) is focused on hyperkalemia as well. The company raised $88 million in a stock sale earlier in the week.

After it starts bringing in revenue, ZS says it can beef up its pipeline, possibly with some in-licensing deals. All together, the biotech says it has raised about $80 million. Its latest round was led by Novo A/S, with Sofinnova, Alta, Salem Partners, RiverVest and others joining in. 

ZS is looking to jump into an increasingly chilly IPO pool. A string of biotech IPOs has stumbled into the market recently after the companies were forced to accept a discounted price for their shares. 

- here's the S-1