North Carolina drug development company Tranzyme Pharma has set a price range for an IPO that could raise up to $65 million.
Durham, North Carolina-based Tranzyme said in its latest securities filings that it will sell 5 million shares in a price range of $11 to $13 per share. The mid-point of that price range would raise about $60 million; Tranzyme said that at that $12-per-share price, it expects net proceeds of about $53.8 million.
The money would be used to fund phase 3 clinical trials on ulimorelin, which is being studied as a treatment of post-operative ileus, or POI, a condition in which the gastrointestinal tract stops functioning normally following intestinal surgery. The condition prevents patients from eating solid food or having bowel movements, both of which need to resume before a patient can be discharged. POI can last anywhere from a few days to two weeks. Tranzyme CEO Vipin Garg has said that ulimorelin could reduce healthcare costs associated with POI by shortening the length of hospital stays.
The company also plans to finance continued development of TZP-102 for the treatment of diabetic gastroparesis, an upper gastrointestinal disorder. That compound is planned for a phase 2b clinical trial.
Tranzyme is granting its underwriters another 750,000 shares in the event that the offering is oversubscribed. If all shares are sold at the top price range of the offering, the value of the IPO could rise to $74.7 million.
Tranzyme disclosed its IPO plans last November in a securities filing. The venture capital-backed company has raised more than $60 million in equity financing from investors including H.I.G. Ventures, Quaker BioVentures and Thomas McNerney & Partners.
