CNS Pharmaceuticals, a biotech company, has completed its initial public offering. It has its head office in the Galleria area. The company raised $9 million by selling 2.1 million shares at $4, at the low end of its range of $4-$5.
The company is listed on the Nasdaq with a ticker symbol ‘CNSP’ and has a market capitalization of $67 million.
CNS 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. However they allowed their investigative drug application with the US Food and Drug Administration (FDA) to lapse for strategic reasons.
The money, along with a $5.8 million grant given to a sub-licensee, partially owned by Dr Preibe, will be used to commence the Phase 2 trials of Berubicin. However the company will need to raise a further $7 million to complete the trials.
You can see the complete list of Houston-area public companies on my blog here.