Contineum Therapeutics, a biotech firm creating medicine for purposes in neurological problems in addition to immunology and irritation indications, has raised $110 million in IPO money to assist a pipeline that features a lead program in early medical improvement for fibrosis.
San Diego-based Continuem wanted to decrease its expectations with a view to proceed with the inventory sale. In preliminary monetary phrases set earlier this week, the corporate aimed to supply 8.8 million shares for $16 to $18 every, which might have raised $149.6 million on the pricing midpoint. However late Thursday, Contineum priced its providing of 6.75 million shares at $16 apiece. These shares will commerce on the Nasdaq beneath the inventory image “CTNM.”
Contineum’s lead wholly owned asset, PIPE-791, is in Part 1 testing for idiopathic pulmonary fibrosis (IPF), a continual dysfunction wherein the buildup of scar tissue, or fibrosis, results in a progressive lack of lung perform that turns into deadly. The permitted IPF medicine solely gradual the illness’s development and so they convey a variety of systemic uncomfortable side effects. The necessity for brand new and higher therapies has attracted many corporations into IPF analysis.
The goal of PIPE-791 is lysophosphatidic acid 1 (LPA1), a receptor that contributes to fibrosis when activated. Contineum’s drug is a small molecule designed to dam this receptor. Different corporations creating LPA1 receptor blocking medicine embrace Bristol Myers Squibb, AbbVie, Horizon Therapeutics, and Construction Therapeutics. Different corporations are pursuing different targets for IPF.
A number of sclerosis is one other illness goal for PIPE-791. Within the IPO submitting, Contineum notes that ranges of LPA, a pro-inflammatory protein, are elevated in MS sufferers, and should contribute to the development of the illness. The Contineum drug’s potential to penetrate into the mind gives the potential to deal with MS. In preclinical analysis, Contineum mentioned blocking the LPA1 receptor diminished neuroinflammation and promoted the formation of recent myelin sheaths on axons that misplaced this protecting layer.
MS can also be the main focus of PIPE-307, a Contineum drug candidate licensed by Johnson & Johnson. This small molecule is designed to selectively block the M1 receptor, which has potential purposes in MS and melancholy. Although J&J now has world rights to develop PIPE-307 for all indications, the settlement permits Contineum to develop the molecule for relapsing and remitting types of MS. A Contineum Part 2 research is ongoing.
Contineum, which traces its origins to a startup creation engine of Versant Ventures, was previously often known as Pipeline Therapeutics. On the finish of final yr, the corporate modified its title. Contineum reported a $15.5 million money place together with $109.6 million in marketable securities on the finish of 2023. In response to the IPO submitting, Contineum plans to spend about $66 million on lead program PIPE-791, taking the drug via Part 2 testing in IPF and progressive MS.
One other $16.2 million is deliberate for the completion of the Part 2 take a look at of PIPE-307 in relapsing and remitting MS. Continuem didn’t specify timelines for these plans. Within the submitting, the corporate mentioned it expects its capital is ample to final via the top of 2028. That projection assumes Contineum receives no extra funds from the J&J collaboration and the corporate doesn’t train its choice to fund a portion of Part 3 improvement of the partnered drug in any indication.
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