It’s been a slippery slope for Kura Oncology, which slashed the price of its IPO shares and substantially increased the size of its offering tonight. The startup is based in San Diego, and has an office in Cambridge, MA.
The company set out to raise as much as $86 million when it filed for the IPO on October 20, but lowered its sights in a revised filing that sought to raise $60 million by offering 3.75 million shares at $16 a share. Tonight, Kura sold 6.25 million shares at $8 a share—and raised a total of $50 million.
Kura, founded earlier this year to develop new drugs for solid tumors and blood cancers, is trying a new approach to determine if tipifarnib can be used to treat some people with certain blood cancers and solid tumor cancers. Tipifarnib was shelved in 2005, before advances in genomic sequencing had been developed to help drug researchers identify the genetic traits of patients who respond well to certain drugs.
Tipifarnib is currently in mid-stage trials for treating patients with locally advanced tumors that carry HRAS mutations and patients with peripheral T-cell lymphoma.
In a statement, Kura says its shares are expected to begin trading on the NASDAQ market Thursday morning under the ticker symbol KURA.
In addition, Kura has granted the underwriters a 30-day option to purchase as many as 937,500 additional shares to cover any over-allotments.