Osteoarthritis biotech Carbylan Therapeutics ($CBYL) came through with a $65 million IPO after significantly downsizing its ambitions, raising cash to support its treatment for knee pain.
The company, headquartered in Palo Alto, CA, priced 13 million shares at $5 apiece, setting aside another roughly 2 million shares for its underwriters and setting its maximum deal value at nearly $75 million. Earlier this year, Carbylan set out to raise about $75 million by moving 5.8 million shares at between $12 and $14 each, but the company postponed that effort in February only to refile at a discount this month.
With the funds, Carbylan will pay for the ongoing Phase III develop of Hydros-TA, its injected treatment for pain related to osteoarthritis. The drug combines a corticosteroid with a viscosupplement, using a cross-linking formulation that allows for both short-term treatment of knee pain and long-term relief from chronic issues, the company said. Hydros-TA is currently in the midst of a 500-patient Phase III trial with data expected next year, according to Carbylan, and the biotech plans to submit its injection to the FDA in early 2017.
Meanwhile, 2014's bracing pace of biotech IPOs has largely continued into the new year, as a handful of Wall Street misfires haven't discouraged a steady stream of hopefuls. Over the last two months, aTyr Pharma, Blueprint Medicines, Aduro Biotech, Cidara Therapeutics and XBiotech have filed to raise more than $300 million combined in hopes the industry's IPO window remains open. Last year, nearly 90 life sciences companies went public, raking in more than $6 billion.
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