Kadmon has filed to go public in a $140 million IPO. But if it makes the leap, it will be without founder Sam Waksal anywhere near the premises.
The biotech filed its S-1 today, spelling out Waksal’s resignation from Kadmon, which is helmed by his brother Harlan. Sam Waksal became the poster boy for insider trading on Wall Street 15 years ago, when he wound up in prison after tipping off friends, family members and Martha Stewart about a regulatory setback for ImClone’s Erbitux.
Along with his prison sentence, the SEC barred Sam Waksal from serving as an officer in any public company. But his exit at Kadmon in the leadup to the IPO is being smoothed with promises of up to $25 million in payments from the biotech.
According to the S-1, Waksal will get $3 million in severance, up to $6.75 million in milestone payments and up to $15 million for his split of possible business development deals.
Kadmon has a range of drugs in the pipeline, including ROCK2 inhibitors, that are aimed at cancer, autoimmune diseases, fibrosis and genetic diseases. Its most advanced drug is KD025, which sits on its rho-associated coiled-coil kinase 2 (ROCK2) platform.
- here's the S-1
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