Ideaya Biosciences IPO: What You Need To Know

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Ideaya Biosciences IPO: What You Need To Know

Shanthi Rexaline 5/22/2019 4:08:44 PM

Ideaya Biosciences, an oncology-focused precision medicine company, is setting out to make a mark among mushrooming biotech listings. This early stage biotech, founded in 2015, is headquartered in South San Francisco, California.

The IPO Terms

Ideaya is selling 5 million shares in a proposed initial public offering, to be priced between $13 and $15 per share, according to its S-1 filing.

The company said in the filing insiders have agreed to purchase an aggregate of about $35 million in shares in the offering at the IPO price.

Since Ideaya qualifies as an 'emerging growth company' under the JOBS Act, it said it has chosen to comply with certain reduced public company reporting requirements for the prospectus.

Ideaya has applied for listing its shares on the Nasdaq under the ticker symbol IDYA.

The underwriters for the IPO are JPMorgan, Citigroup and Jefferies.

The Company

Ideaya is developing targeted therapies for patients selected using molecular diagnostics. Its approach includes identifying and validating biomarkers with small-molecule drug discovery to select a patient population that is likely to benefit from its targeted investigational therapies directed at oncologic pathways and synthetic lethality.

Ideaya's lead candidate IDE196, a protein kinase C inhibitor, is being evaluated in a Phase 1 trial by Novartis AG (NYSE: NVS) in patients with uveal melanoma who have GNAQ and GNA11 mutations.

The company is also planning to evaluate IDE196 in a broader patient population in a basket trial in multiple solid tumor types that have GNAQ or GNA11 mutations or PKC gene fusions.

The Financials

The company has not generated any revenue, as it does not have any approved products for sale. It has funded its operations through the gross proceeds from the sale of redeemable convertible preferred stock and convertible promissory notes.

Ideaya said it has raised about $140 million from institutional investors and strategic investors, including Celgene Corporation (NASDAQ: CELG); Alphabet Inc (NASDAQ: GOOG) (GOOGL)'s GV, formerly Google Ventures; Novartis; and Roche Holdings AG Basel ADR (OTC: RHHBY)'s financial arm.

For the year ended December 2018 Ideaya reported a net loss of $34.3 million, wider than the loss of $11.9 million in the previous year.

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