Kaleido prices $75M IPO well below range; Sage raises $575M ahead of FDA decision
→ Kaleido Biosciences has raised $75 million to develop its microbiome metabolic therapies in a downsized IPO. The final going price for the 5,000,000 shares was $15 each, falling short of the $20-$22 range CEO Alison Lawton had previously planned, which would have translated into $100 million.
Trading under the symbol $KLDO, the biotech now plans to begin two Phase II hyperammonemia programs and continue working on other treatments targeting multidrug resistant bacteria, atherosclerotic cardiovascular disease and chronic kidney disease, though those programs will presumably get a smaller chunk of funding than intended.
Days ago Seres, another microbiome-focused biotech launched by Flagship Pioneering, was forced to lay off 30 research, manufacturing and admin staffers — including its CSO — as part of its recovery from a Phase II setback.
→ With its shares running hot, Sage Therapeutics $SAGE has gone out and banked some real cash. The biotech raised $575 million through the sale of its stock. Sage appears to be on the cusp of launching a marketing campaign for its injectable postpartum depression therapy, brexanolone, which is expected to win FDA approval by March.
→ Having ushered the first preclinical candidates from AbCellera into further development, Denali has expanded its partnership with the Vancouver-based discovery shop to reserve eight more slots on its microfluidic-based screening platform to identify leads for neurodegeneration targets of its choice. In the previous collaboration, AbCellera was able to generate a number of leads that pass muster at Denali for a “high profile, top priority” program that previously was stuck, CEO Carl Hansen told Endpoints News — something they are looking to replicate in the expanded deal.
→ US Senator and presidential hopeful Bernie Sanders has asked lawmakers to resume distributing unbranded, lower-cost versions of the LEMS drug, Firdapse, which is currently sold by Catalyst Pharmaceuticals $CPRX for a controversial $375,000 annual price tag, according to a Reuters report, based on a letter from the Vermont senator’s office reviewed by the wire agency. The news comes after Sanders admonished Catalyst for “fleecing” taxpayers and called out the drugmaker for its “corporate greed”. Some patients with the rare neuromuscular disorder have cried foul following the FDA approval in November, saying they can no longer access the compound, which was once handed out free to many patients by Jacobus Pharmaceuticals, a little New Jersey-based outfit that distributed the treatment via the FDA’s compassionate use program.