Carbylan pulls off a $65M IPO on its second go-round

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.

- read the statement

Suggested Articles

Cancer biotech Zentalis Pharmaceuticals priced its IPO at $165 million, eclipsing the $100 million goal it laid out in early March.

The agreement gives Innovax access to a GSK adjuvant to enhance the immune response triggered by its recombinant protein-based vaccine.

Johnson & Johnson is paying Fate Therapeutics $50 million upfront to collaborate on up to four CAR NK and CAR-T cell therapies.