9:51 PM
Jan 11, 2019
 |  BC Extra  |  Financial News

Kaleido, Cirius seeking NASDAQ listings

Kaleido Biosciences Inc. (Lexington, Mass.) and Cirius Therapeutics Inc (San Diego, Calif.) each proposed NASDAQ IPOs on Friday.

Kaleido, which is designing therapies to modulate the metabolic output and profile of the microbiome, is seeking up to $100 million in its offering. The company's most advanced compounds, KB195 and KB174 for hyperammonemia-related disorders, are derived from a class generally regarded as safe (GRAS) and are in pre-IND clinical testing. A Phase II trial of KB195 to treat urea cycle disorders is due to begin this half; the company hopes to start Phase II testing of either KB195 or KB174 in 1Q20 to treat hepatic encephalopathy.

Since its inception in 2015, Kaleido has raised about $148 million in equity funding. The company completed a $101 million series C round in June 2018 (see "Flagship-Backed Kaleido Raises $101M Series C Round").

Flagship Pioneering holds about 68% of Kaleido's equity. The planned offering's underwriters are Goldman Sachs, J.P. Morgan, Morgan Stanley and Canaccord.

Cirius, which is developing small molecule therapies for liver and metabolic diseases, proposed to raise up to $86.3 million. The company's lead compound MSDC-0602K is in the Phase IIb EMMINENCE trial to treat non-alcoholic steatohepatitis with fibrosis; final data are due next half, and Cirius plans to begin a Phase III trial in 2020. The therapy is a second generation thiazolidinedione (TZD) insulin sensitizer that is designed to avoid the cardiovascular symptoms and edema associated with first-generation agents (see "Cirius Safety").

Metabolic Solutions Development Co., an entity associated with predecessor company Octeta Therapeutics Inc., holds 22% of Cirius's equity, while Frazier Life Sciences has about 21% and Novo Holdings A/S (Hellerup, Denmark) owns about 20%. Underwriters of the IPO are Citigroup, Credit Suisse, Needham and Wedbush.

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