Despite the rough treatment, money-losing biotechs are receiving at the hands of investors. Tiny Clarus Therapeutics, based in Northbrook, IL, has filed plans to raise up to $86 million in an IPO. With no product revenue to speak of, the seven-year-old biotech has plenty of red ink on the books, with its testosterone replacement therapy--OriTex--poised to begin a late-stage trial.
Costs at Clarus jumped to $6.2 million for the first quarter. A year ago it reported $4 million in losses for the same period. Clarus has maintained a low profile in the industry. Its last announced financing was an $8 million Series C in 2007 from H. I. G. Ventures and Thomas, McNerney & Partners. According to its website, Clarus has raised a total of $15 million.
- here's the report from the Wall Street Journal