Science Editor

CyDex Pharmaceuticals Inc. filed for a proposed initial public offering of $50 million, though the company has not determined the price or number of shares to be offered.

The Lenexa, Kan.-based firm is developing a pipeline of products based on its delivery technology, Captisol, which it also out-licenses for use in other companies' drug programs.

Four Captisol-enabled drugs have been brought to market in the U.S.: Vfend (voriconazole) I.V. and Geodon (ziprasidone) for Injection, both sold by Pfizer Inc.; Abilify (aripiprazole) from New-York based Bristol-Myers Squibb Co.; and the dog medication Cerenia (maropitant citrate) by Pfizer Animal Health.

In a recent press release, the company also said it had development agreements with 13 pharma and biotech companies, including BMS and Whitehouse Station, N.J.-based Merck & Co. Inc., as well as what it termed "clinical use agreements with major pharma and biotech companies."

Captisol, a modified cyclodextrin for use in drug development and formulation, is used for delivery to improve a compound's solubility, stability and bioavailability. The technology works by forming complexes with water-insoluble drugs to make them water soluble. Captisol-enabled drugs can be delivered by injection, orally, through inhaled formulations and in ophthalmic applications.

Beyond partnership opportunities, CyDex also is building its own product pipeline by applying its technology for formulations of drugs that are off patent or soon to go off patent. Its in-house development includes pulmonary products, solid oral-dose products and products for central nervous system disorders. (See BioWorld Today, Aug. 18, 2004.)

CyDex reported $12.7 million in revenue and a net loss of $2.6 million for 2007. Its revenue included $3.8 million in royalty payments. As of Dec. 31, it had $8.1 million in cash and cash equivalents.

In its prospectus the company said in intends to use the IPO proceeds for clinical trials and for further development of its retained product candidates, as well as for further development of its partnered product candidates. Funds also will go toward building internal infrastructure and capabilities, and for working capital and general corporate expenses.

Major CyDex shareholders are TVM Capital Corp., RiverVest Venture Fund I L.P., Life Sciences Opportunities Funds, Private Equity Direct, Finance, S.R. One Ltd. and Eastman Chemical Co. Investments Inc.

San Francisco-based Pacific Growth Equities LLC is acting as sole book-running manager, with San Francisco-based JMP Securities LLC and New York-based Fortis Securities LLC as co-underwriters.

Upon successful completion of the IPO, CyDex shares would trade on Nasdaq under the ticker "CYDX."