Cortendo sets its sight on US IPO
31.10.2014 - Another biotech is leaving the European market place in favour of a US IPO. Swedish Cortendo is now planning to go public in the US after raising €8.8m in bridge financing.
Cortendo AB has been planning its IPO for some time now, and so far, Oslo Axess was the place to go public. But now, recently appointed CEO Matthew Pauls has ditched the European stock exchange in favour of one overseas. The biopharmaceutical company has announced that it is evaluating listing strategies in the US.
“The U.S. represents the largest potential market for our product candidate, COR-003, and a potential future listing on the U.S. capital markets would provide an improved opportunity for growth and brand recognition,” said Pauls. “We continue to view the Oslo Stock Exchange as a dynamic and attractive marketplace for companies seeking international sources of capital, and our experience has been positive.”
The news comes in tandem with the announcement of a raise of SEK81.5m (€8.8m) in a private placement. Cortendo is selling over 19 million of its shares at SEK4.22 per share to Swedish HealthCap, the Third Swedish National Pension Fund and Norway’s Storebrand and Arctic Fund Management. The investors will hold almost a third of Cortendo issued share capital.
The money is to be used for the continued development of Cortendo’s lead candidate, COR-003 (levoketoconazole) for the treatment of Cushing’s Syndrome. The drug candidate is currently being studied in the global Phase 3 SONICS study and has received orphan designation for both the European and US market. “We welcome this opportunity to invest in Cortendo’s development and commercialisation plans for COR-003,” said Dr. Mårten Steen of HealthCap. “Cortendo has made important recent progress, and we believe in the company’s ability to bring a new treatment for patients with Cushing’s syndrome to the market.”