Michigan cancer-fighting biotech spin-out lands $82m in IPO.

OncoMed Pharmaceuticals, a spin-out of the University of Michigan, has raised nearly $82m in an initial public offering (IPO).

Founded in 2004, the firm is commercialising cancer-fighting drugs that target stem cells responsible for the growth and metastasis of tumours.

The company offered 4.8 million in shares at $17 each, above the expected range. It will be traded on NASDAW under the name OMED.

Including the IPO financing, the firm has raised $407.5m to date. Of this, $187.1m comes from a consortium of venture backers, $1.2m in grants, and $137.5m from partnerships with pharmaceutical giants GlaxoSmithKiline and Bayer Healthcare. The agreements in place with the firms could lead to over $1bn in milestone payments.

Ken Nisbet, director of the University of Michigan tech transfer office, said: “We’re pleased that OncoMed continues to move products resulting from U-M research forward in the clinical process. Their IPO is a tremendous accomplishment, and we’re looking forward to seeing the drugs reach the market for the benefit of cancer patients worldwide.”