MIT's cancer drug developer Kronos Bio floated above its range in an upsized offering and saw its shares soar in price post-IPO.
Kronos Bio, a US-based cancer therapy spinout of Massachusetts Institute of Technology, went public in a $250m initial public offering on the Nasdaq Global Select Market on Friday.
The size of the offering was increased from almost 10.3 million shares to more than 13.1 million and they were priced at $19 each, above the $16 to $18 range set by the company last week. Its shares closed at $27.07 on Friday, valuing the company at more than $1.4bn.
Kronos is working on precision cancer treatments that will utilise a function known as dysregulated transcription.
Up to $90m of the IPO proceeds will fund a registrational phase 2/3 clinical trial for the company’s lead drug candidate, entospletinib, for acute myeloid leukaemia. Between $20m and $30m has been earmarked for a phase 1/2 trial for a second candidate, KB-0742, in advanced solid tumours.
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