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Chiasma Seeks $75 Million and FDA Approval for Acromegaly Orphan Drug

Xconomy Boston — 

Chiasma, a Newton, MA-based biopharma company trying to develop oral drugs for orphan diseases typically treated with injectables, is seeking to sell shares in an initial public offering worth about $75 million. The company plans to sell 5.36 million shares for $13 to $15 each in the IPO, according to a document filed with the Securities and Exchange Commission.

Chiasma’s lead therapy targets acromegaly, a condition that can lead to death and is caused when the pituitary gland releases excess human growth hormone, subsequently elevating the body’s insulin levels. That increases the size of bones in the limbs and face. Andre Roussimoff, better known as Andre the Giant, had the condition.

The company has completed a Phase 3 trial for a drug, oral octreotide, which is a natural inhibitor of human growth hormone. It submitted a new drug application on June 15 to the FDA, and already has orphan drug designation.

The new money will be used for launching the drug in the U.S., for conducting an additional late-stage trial to gain approval in Europe, and for other treatments, the company says.

If all goes well with the IPO, Chiasma plans start a mid-stage trial in 2016 to see if the drug can also be used on neuroendocrine tumors. The company also plans to select a second product candidate in 2016, and initiate nonclinical development of a third the following year, it said in the filing.