IPOs

Kaleido, Cirius brace the IPO market seeking a combined $186M — despite barriers at shutdown-mode SEC

As biotech stocks celebrate a post-JPM rally around the best ever start to the year, Kaleido Biosciences and Cirius Therapeutics have applied to join the club despite a government shutdown that’s frustrated a number of execs trying to go public early this year.

Banking on the promise of its platform tech to modulate the function and distribution of the microbes in the body, Kaleido is seeking $100 million-plus, while Cirius’ initial goal is set at $86 million for a focused bet on a NASH program — at least for now.

Though the SEC’s electronic system for regulatory filings is still open, the limited staff on hand means the agency has stopped reviewing corporate registration statements, including proposed IPO filings, the WSJ reported.

With the chosen symbol $KLDO, Kaleido is the more senior of the two, launched in 2015 out of Flagship Labs with a library of microbiome metabolic therapies (MMT) that has since expanded to over 1,000 candidates. Because it’s synthesizing these MMTs with “sources of chemistry predominantly found in foods,” the biotech has been able to run clinical studies without an IND.

That might change, though, as the IPO filing — which comes just seven months after Kaleido secured a $101 million round — will fund its KB195 and KB194 programs in hyperammonemia through a potential Phase II, expected to begin in the first half of 2019.

The rest of the pipeline, including treatments targeting multi-drug resistant bacteria, atherosclerotic cardiovascular disease and chronic kidney disease, will also benefit alongside the product platform and discovery efforts.

Cirius, meanwhile, is putting all its egg in the MSDC-0602K basket. The big idea is that a second-generation insulin sensitizer can mediate the problematic overnutrition in patients while avoiding the safety issues driven by PPAR gamma.

Bob Baltera

“If you look at NASH,” CEO Bob Baltera previously told Endpoints News, about half of all patients are Type 2 diabetics. “It appears that insulin resistance is really a trigger of liver disorder, and there’s been some clinical work that looks at first-generation insulin sensitizers, which showed a large impact on the disease.”

With the proceeds, plus $22.3 million currently in the bank, the company expects to fund development and manufacturing of the lead drug for at least 12 months. Cirius plans to list as $CSTX.


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Biotech Investment Analyst
SV Health Investors Boston, MA
Director, Program Management
Contrafect Corporation New York, NY
Director, Translational Sciences
Cadent Therapeutics Cambridge, MA

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