Carbylan Therapeutics Inc (NASDAQ:CBYL) has come through with a $65 million IPO. The new IPO is significantly lower than its earlier ambitions to raise support for its research in knee pain. The company had earlier tried to raise $75 million at a $211 million market cap but has now revised the terms.
The company has priced 13 million shares at $5 a share. The company has also set aside another 2 million shares for underwriters that bring the total value of the IPO at around $75 million. At the $5 offer price, Carbylan will have a diluted market cap of $125 million and will have $65 million in cash.
Earlier in the year Carbylan had tried to raise $75 million by moving 5.8 million shares at about $12 to $14 per share. However, the plan was postponed, and the company has come again with its effort to raise capital by reducing the share price.
The funds generated will help Carbylan pay for the Phase III development of Hydros-TA. The drug is the company’s treatment for pain related to osteoarthritis. The drug adds a corticosteroid with viscosupplement using a cross liking formulation that allows for both short and long term relief from chronic arthritis.
Hydros-TA is currently in a 500 patient Phase III trial, the data of the trial is expected to be out by next year according to Carbylan. The company intends to submit the data from the research to FDA in 2017.
The fast pace of biotech IPO’s has continued to this year, and a few misfires have not dampened the spirits. Carbylan is the sixth IPO from Bay Area so far this year and the fifth from the health sector. Just over the last two months Aduro BioTech Inc (NASDAQ:ADRO), Cidara Therapeutics Inc (NASDAQ:CDTX) and XBiotech Inc (NASDAQ:XBIT) have filed to raise an IPO. In 2014 a total of 90 biotech companies raised more than $6 billion after going public.