Arkin Holdings, of Herzliya Pituach, Israel, announced a new partnership, Arkin Bio-Ventures II, created to invest in 10 to 12 private therapeutics developers. The new $140 million fund, supported with contributions from Arkin and other investors, including Israeli institutional investors Migdal and Phoenix Group, plans to support companies developing gene therapies, RNA/DNA-based therapies and other targeted therapies.
Ayala Pharmaceuticals Inc., of Rehovot, Israel, has filed to raise up to $50 million in an IPO on Nasdaq intended to support clinical development of AL-101 and AL-102. AL-101, previously known as BMS-906024, is the company's lead candidate and is under study as a potential therapy for recurrent metastatic adenoid cystic carcinoma and triple-negative breast cancer. AL-102, previously known as BMS-986115, is being studied for the treatment of desmoid tumors. Both candidates are exclusively licensed from New York-based Bristol Myers Squibb Co. and are small-molecule gamma secretase inhibitors targeting the aberrant activation of the Notch pathway. The offer has yet to price. Its proposed symbol is AYLA. Citigroup Global Markets Inc. and Jefferies LLC are acting as joint book-running managers.
CTI Biopharma Corp., of Seattle, closed a rights offering in which it raised gross proceeds of about $60 million. At the closing, it had sold and issued about 15.7 million shares of its common stock (NASDAQ:CTIC) and about 4.4 million shares of its series X convertible preferred stock. The offering was backstopped by BVF Partners LP, Stonepine Capital LP, Orbimed Private Investments VI LP and New Enterprise Associates Inc.
Lyra Therapeutics Inc., of Watertown, Mass., has filed to raise up to $57 million in a yet-to-price Nasdaq IPO. Proceeds of the financing are expected to support clinical development and pre-commercialization expenses for LYR-210, a depot formulation of mometasone furoate, a synthetic corticosteroid, and further development of LYR-220, a long-acting six-month formulation of the same drug. Both rely on the company's Xtreo drug delivery platform, which consists of a biocompatible mesh scaffold, an engineered elastomeric matrix and a polymer-drug complex. BofA Securities Inc., Jefferies LLC and William Blair & Co. LLC are joint book-running managers for the offering. The company's proposed trading symbol is LYRA.
Numab Therapeutics AG, of Waedenswil, Switzerland, closed a CHF22 million (US$23.8 million) series B financing to support a further broadening of its pipeline and to accelerate the development for a number of programs toward the clinic. The company plans to start a clinical trial for ND-021, its next-generation multispecific immuno-oncology candidate, during the course of this year. New investors in the round included 3sbio/Sunshine Guojian Pharmaceutical (Shanghai) Co. Ltd., Mitsubishi UFJ Capital Co. Ltd. and Eisai Co. Ltd., as well as Numab board member Daniel Vasella.
Zentalis Pharmaceuticals LLC, of New York, filed to raise up to $100 million in a yet-to-price IPO. The cancer-focused company plans to use proceeds from the offering to support advancement of its lead candidate, ZN-c5, an oral selective estrogen receptor degrader, currently in a phase I/II trial for the treatment of ER-positive/HER2-negative, advanced or metastatic breast cancer. It will also fund an ongoing phase I/II trial of ZN-c3, an oral small-molecule DNA damage response drug, in patients with advanced solid tumors; a planned phase I trial of ZN-d5 in patients with acute myeloid leukemia or B-cell lymphoma; and an ongoing phase I/II trial of ZN-e4 in patients with advanced non-small-cell lung cancer with activating EGFR mutations. Its proposed trading symbol is ZNTL. Morgan Stanley & Co. LLC, Jefferies LLC, SVB Leerink LLC and Guggenheim Securities LLC are underwriting the offering.
Zogenix Inc., of Emeryville, Calif., closed its previously announced underwritten public offering of 9.8 million shares of its common stock (NASDAQ:ZGNX), including 1.3 million shares sold pursuant to the underwriters’ full exercise of their option to purchase additional shares, at a price to the public of $23.50 per share. The gross proceeds to Zogenix from the offering were about $230.3 million. Zogenix intends to use the net proceeds to support its activities related to the potential commercialization of Fintepla (fenfluramine hydrochloride) for the treatment of Dravet syndrome; submission of regulatory applications in the U.S. and the EU for Fintepla for the treatment of Lennox-Gastaut syndrome; funding of future clinical trials of Fintepla for other indications; continuing development and activities related to the potential commercialization of MT-1621 for the treatment of thymidine kinase 2 deficiency; and for working capital and general corporate purposes. SVB Leerink and Stifel acted as joint book-running managers for the offering.