CNS Pharmaceuticals, a Houston-based biopharma company has filed for an Initial Public Offering (IPO). The company has its head office in the Galleria area.
It is the second Houston-area biopharma company to file for an IPO recently. Castle Biosciences (which does have commercial revenues) filed for a $58 million IPO last week.
The company doesn’t have any revenues yet and is developing anticancer drugs for the treatment of brain tumors. Based on preclinical data and positive results of the Phase I clinical studies conducted at MD Anderson Cancer Center, the company believes its lead drug candidate, Berubicin, could significantly help in the treatment of glioblastoma, a type of brain cancer that is considered incurable.
Berubicin was discovered at MD Anderson by Dr Waldemar Priebe, the founder of the company. Dr Priebe initially licensed the drug to Reata Pharmaceuticals. They allowed their investigative drug application with the US Food and Drug Administration (FDA) to lapse for strategic reasons.
Dr Priebe engaged a couple of experts who were on the team at Reata. As a result of reviewing the data, the company intends to restart the application.
The company is seeking to raise about $8.5 million at a share price of between $4 and $5. The money will be used to start Phase 2 trials of Berubicin, expected to cost $7 million. Dr Priebe owns 67% of the company
The CEO, and only full-time employee, is John Climaco who joined the company in September 2017. He was previously the CEO of a biopharma startup. The CFO is Matthew Lourie, who is providing services on a part-time, consulting basis.