Kadmon sticks a $100M toe in chilly market waters
Are we seeing a reanimation of the biotech IPO market? The investment community certainly hopes so, and now Kadmon will help put it to a test.
The biotech, a brainchild of ex-CEO and founder Sam Waksal, has laid out terms for its IPO, looking to sell 5.5 million shares within a range of $16 to $20 per. It’s another insider-heavy deal, with investors committing to buy up to 40% of the shares to help make it a success. And the company hopes to raise around $100 million in the effort.
Waksal’s brother Harlan now helms the company after seeing Sam off with a golden parachute of sorts. Waksal was barred from operating any public company after being sent to jail for a notorious insider selling case for his old company ImClone.
According to the S-1, Kadmon initially outlined plans to raise $140 million. It also detailed Sam Waksal’s exit package, with $3 million in severance, up to $6.75 million in milestone payments and $15 million from development deals.
Kadmon has a variety of drugs in the pipeline, including ROCK2 inhibitors, which are aimed at cancer, autoimmune diseases, fibrosis and genetic diseases. Lead drug KD025 came out of its rho-associated coiled-coil kinase 2 (ROCK2) platform.
Best answer I can give is 'I hope so!' Think it's going to take M&A to get serious $ to come back to biotech though.
— Brad Loncar (@bradloncar) July 14, 2016