The tiny Tucson biotech Cancer Prevention Pharma has cut its initial public offering by 36% as the company struggles to find enough interest in a market that is still proving tricky for many biotechs.
The Arizona company--which is focused on a treatment that could help prevent certain cases of colon cancer--has lowered the proposed shares it planned to offer in its upcoming IPO (the deal's timing is day-to-day).
The biotech now says it will raise $16 million by offering 1.25 million shares (down from 1.92 million) at the originally proposed price range of $12 to $14. Insiders still intend to purchase $5 million worth of shares in the offering (now 31%). At the midpoint of the range, CPP's new market cap is less than $100 million.
Cancer Prevention Pharmaceuticals (CPP) was founded in 2009 and plans to list on the NYSE market under the ticker "CPP."
The company announced last year that it was sponsoring one Phase III trial in colon cancer survivors and another Phase III study for Familial Adenomatous Polyposis (FAP)--an orphan disease that causes colon polyps and has an extremely high risk of becoming colon cancer unless treated by surgical removal of the colon/rectum.
CPP is also working with nonprofit groups to support clinical trials in the childhood cancer neuroblastoma, for the prevention of relapse.
In its SEC-1 form posted in April, the biotech said it was looking to spend around $20 million to fund the completion of the Phase III clinical trial of CPP-1X/sul for FAP and any extra studies that may have been necessary for filing an NDA with the FDA.
Swiss specialty pharma company Tillotts and Rockville, MD-based biopharma Sucampo ($SCMP) both have licensing agreements with CPP, and are stumping some of the cash toward the Phase III development.
Another $2 million was also earmarked to help find other indications for CPP-1X/sul and to explore new early-stage product candidates. This may now need to be downgraded given that it will now not be getting the cash it originally planned for.