Durham's Scynexis raises planned IPO price to $10 per share

dbracken@newsobserver.comApril 30, 2014 

Scynexis, the Durham drug-development company that delayed its planned initial public offering of stock earlier this month, has revised its filing again.

In a new securities filing Wednesday, the company said it anticipates its shares will fetch $10. In March, the company had initially targeted selling 4.2 million shares at between $12 and $14. In early April, Scynexis downgraded the anticipated price to between $7 and $8 but increased the number of shares to be sold to 7.3 million.

The latest filing shows Scynexis seeking to sell 6.2 million shares. The company says its proceeds from the IPO are expected to be about $55.1 million, or $63.8 million if the underwriters exercise their option to purchase an additional 930,000 shares.

IPOScoop.com, which publishes an IPO calendar based on information from underwriters, is anticipating that the company will go public this week.

Scynexis, which doesn’t yet have a drug on the market, plans to use $30 million from an IPO to develop its lead drug candidate. The product is an intravenous drug for treating serious and life-threatening fungal infections that is years away from approval.

The experimental drug, SCY-078, stemmed from a collaboration between Scynexis and pharmaceutical giant Merck. Last year, Merck returned the development and commercialization rights to Scynexis.

Scynexis posted $16.9 million in revenue last year from research-and-development services it performed for other companies. Its net loss was $30.5 million. The company had just $1.4 million in cash as of Dec. 31 and has earmarked $15 million of the proceeds from an IPO to pay down a loan.

If successful, Scynexis would be the fourth local company to go public in 2014. The others were Square 1 Bank and biotech companies Argos Therapeutics and NephroGenex.

Bracken: 919-829-4548; Twitter: @brackendavid

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