San Diego's newest biotech, Contineum Therapeutics, recordsdata to go public

Contineum Therapeutics has filed to go public, changing into San Diego’s second biotech IPO of 2024.

The corporate submitted its paperwork Friday with the Securities and Trade Fee a little bit over every week after Boundless Bio filed San Diego’s first preliminary public providing of 2024.

Contineum, which modified its identify from Pipeline Therapeutics in November, is a scientific stage biopharmaceutical firm creating therapies for the remedy of neuroscience, irritation, and immunology, situations reminiscent of lung scarring with no identified trigger, completely different types of a number of sclerosis and melancholy.

Based in 2009, Contineum operates within the coronary heart of San Diego’s biotech cluster at 10578 Science Middle Drive. The corporate employed 31 full-time staff as of Dec. 31.

This 12 months, it’s seeking to submit a scientific trial authorization for its lead drug candidate, PIPE-791, a small molecule that penetrates the mind to deal with idiopathic pulmonary fibrosis, a illness that causes scarring of the lungs, and progressive a number of sclerosis.

Final 12 months, the corporate granted pharmaceutical large Johnson & Johnson an unique, worldwide licensing deal to develop, manufacture and commercialize PIPE-307, a drug candidate for the potential remedy of melancholy and relapse-remitting a number of sclerosis.

Contineum obtained an upfront fee of $50 million from J&J and is eligible to obtain about $1 billion in milestone funds. The indication for melancholy is predicted to maneuver into Section 2 trials this 12 months.

Contineum didn’t disclose in its submitting with the SEC the proposed worth of its shares or the quantity of inventory it is going to supply. It would commerce on the Nasdaq International Choose Market below the ticker image “CTNM.”

The biotech has traditionally funded its operations by issuing convertible promissory notes, non-public placements of its inventory, the license settlement with J&J and a financial institution mortgage. As of Dec. 31, Contineum has raised gross proceeds of roughly $194 million and recorded a deficit of $75.1 million, based on the submitting.

The corporate reported web revenue of $22.7 million for the 12 months ending Dec. 31, 2023, in comparison with the earlier 12 months when it recorded a web lack of $24.3 million. It has money, money equivalents and marketable securities value $125.2 million, as of Dec. 31.

Contineum elevated its web money circulation by about $9 million between 2022 and 2023.

The corporate tasks that it’s going to incur web losses for the foreseeable future. It didn’t disclose a timeline for when it expects the IPO funds to hold it by.

Contineum expects to make use of the IPO proceeds to increase its operations and improve its headcount to fund analysis and improvement actions. The cash can even be used to hunt regulatory approval for its drug candidates, advance them by scientific trials, launch industrial actions and increase its pipeline of medication.

In latest months, massive funding rounds and IPOs have been few and much between as younger corporations face a harder investing surroundings in comparison with earlier within the pandemic.

Contineum Therapeutics’ IPO is underwritten by Goldman Sachs & Co., Morgan Stanley, Stifel and RBC Capital Markets.