Calithera Biosciences, a early-stage biotech developing a drug platform that inhibits tumor metabolism, announced terms for its IPO on Friday. The San Francisco, CA-based company plans to raise $84 million by offering 6 million shares at a price range of $13 to $15. Insiders intend to purchase $15 million in shares in the offering (18% of the deal). At the midpoint of the proposed range, Calithera Biosciences would command a fully diluted market value of $236 million.
The company's lead candidate is in three Phase 1 trials for solid tumors (including breast cancer), leukemias and lymphomas. The drug works by inhibiting glutaminase, a critical enzyme in tumor metabolism. It is targeting Phase 2 trials to begin in late 2015 or early 2016. Calithera is also in preclinical trials for an immunology treatment.
Primary shareholders include Delphi Ventures (12% pre-IPO stake), Morgenthaler (11%), Advanced Technology Ventures (11%), Adage Capital Management (11%), T. Rowe Price (5%), Wellington Management (4%) and the Longwood Fund (4%).
Calithera Biosciences, which was founded in 2010, plans to list on the NASDAQ under the symbol CALA. Citi and Leerink Partners are the joint bookrunners on the deal. It is expected to price during the week of September 29, 2014.
