NephroGenex, which is developing a drug that treats kidney disease in patients with Type 2 diabetes, has filed plans for an initial public offering of stock.
According to its filing with the Securities and Exchange Commission, NephroGenex hopes to raise $46 million from the IPO with its stock pricing at between $12 and $14 per share. It also plans to list on the Nasdaq under the symbol “NRX.”
The company will use proceeds from the IPO to finance the late-stage trials on pyridorin, according to its filing. Pyridorin is being developed to slow the progression of diabetic nephropathy, a chronic, degenerative disease of the kidneys caused by diabetes. The company says 6 million people now suffer from the disease.
NephroGenex bought the rights to pyridorin in 2007 from BioStratum, a Durham company co-founded by J. Wesley Fox, who also co-founded NephroGenex. Fox is NephroGenex’s president and chief science officer. Fox could not be reached for comment on Tuesday.
The company has three employees and eight executive officers, according to its filing. Earlier this year, it filed a draft registration under the Jumpstart Our Business Startups Act, which allows companies with less than $1 billion in revenue to file plans for the SEC to review before disclosing IPO plans publicly.
Such a confidential filing lets privately held companies sound out whether the market has an appetite for its stock without publicly disclosing detailed financial information and the risks that the company is facing.
NephroGenex has no FDA-approved products for sale and, like many drug developers, relies on the sale of preferred stock and government grants to fund research. In 2012, it reported a $2.9 million net loss, and a $2.2 million net loss through Sept. 30.
It had $202,344 in cash and cash equivalents as of the end of the third quarter but raised $2.65 million in November and December by selling some debt that is convertible into equity, according to the filing. Those convertible promissory notes will convert into NephroGenex common stock if the IPO is successful.
The company plans to use $30 million from the IPO to fund phase III studies of pyridorin and $1.5 million to start developing an intravenous version of pyridorin to treat acute kidney injury, which the company sees as a “very significant market opportunity.” The remaining IPO proceeds would be used for general corporate purposes.