GlycoMimetics registers $86m IPO for orphan disease programs
This article was originally published in Scrip
Now that Pfizer has taken on Phase III development for GlycoMimetics's lead drug candidate GMI-1070 for sickle cell disease, and since it had just $10.8m in cash as of 30 June, the Gaithersburg, Maryland-based company has registered for an initial public offering to raise up to $86.25m for early clinical and preclinical programs.
GlycoMimetics specializes in discovery and development of glycomimetic drugs, which mimic the structure of carbohydrates involved in biological processes, with a focus on therapeutics that meet unmet medical needs. The company intends to use its IPO proceeds to start a Phase I clinical trial with healthy volunteers for its lead wholly-owned drug candidate GMI-1271 in the second quarter of 2014 followed by a Phase I/II trial with acute myeloid leukemia (AML) patients.
GlycoMimetics had $6.9m in operating costs for the first half of 2013, but the company earned $3.9m in revenue between January and June, and it stands to earn $35m from Pfizer when the pharma giant begins a planned Phase III study for GM-1070 in mid-2014.
Pfizer licensed GM-1070 in 2011 (scripintelligence.com, 12 October 2011). The drug binds to all three members of the selectin family of adhesion molecules involved in vaso-occlusive crisis (VOC), which causes intense pain for sickle cell patients. GlycoMimetics revealed top-line data in April from a 76-patient Phase II clinical trial in which adults and children had shorter VOC events, spent less time in the hospital per VOC and used fewer narcotic pain drugs (scripintelligence.com, 16 April 2013).
Pfizer apparently exercised its option to conduct the Phase III program for GM-1070 based on the Phase II results. GlycoMimetics earned $22.5m up front under Pfizer's license for the sickle cell drug and it could receive up to $115m in development milestone payments, up to $70m in regulatory milestone fees and up to $135m for commercial milestones before royalties ranging from the low double digits to the low teens on commercial sales.
Most of the outstanding GlycoMimetics shares prior to its IPO are owned by venture capital investor New Enterprise Associates with a 75.2% stake. Another 11.6% of the company is owned by Genzyme.
GlycoMimetics CEO Rachel King owns 5.5% of the company, which also plans to finance drug discovery and preclinical research with proceeds from the forthcoming IPO.