US-based cancer therapy developer Pyxis Oncology secured $168m in an upsized initial public offering on Friday representing exits for pharmaceutical firms Bayer, Pfizer and Ipsen.

The company issued 10.5 million shares on the Nasdaq Global Select Market priced at the top of its $14 to $16 range. They opened at $18.88 but crashed to $13.20 by the end of its first day of trading.

Pyxis is developing antibody-drug conjugates (ADCs) and immunotherapies for cancers that are difficult to treat, advancing work by Thomas Gajewski, the AbbVie Foundation professor of pathology at University of Chicago.

A total of $140m has been allocated to the preclinical development of the company’s three cancer drug candidates and, should these be successful, the clinical trials. Capital is also going towards drug discovery programmes, the in-licensing of assets and other business activities.

Pyxis received $152m in a March 2021 series B round co-led by Arix Bioscience and RTW Investments that included Ipsen, Pfizer and Bayer, the last two through Pfizer Ventures and Leaps by Bayer respectively.

Perceptive Advisors, RA Capital Management, BVF Partners, Janus Henderson Investors, Cormorant Asset Management, HBM Healthcare Investments, Acuta Capital Partners, Ridgeback Capital Investments and Surveyor Capital also took part in the series B round.

The participants were filled out by Laurion Capital Management, Logos Capital, LifeSci Venture Partners, funds managed by Tekla Capital Management, Longwood Fund and Agent Capital.

The company had attracted $22m in a 2019 series A round led by Leaps by Bayer that included Ipsen, UChicago’s Startup Investment Program, Longwood Fund and Agent Capital.

Pfizer remains Pyxis’s largest shareholder following the IPO with an 8.8% stake. Bayer owns 8.4%, Perceptive Advisors 4.7%, Arix Bioscience and RTW Investments 4.4% each, RA Capital 3.9% and Longwood Fund 3.7%.

BofA Securities, Jefferies, Credit Suisse Securities (USA), William Blair and LifeSci Capital are the underwriters for the offering. They have been granted a 30-day option to purchase up to an additional 1.57 million shares that could boost its size to about $193m.

The original version of this article appeared on our sister site, Global University Venturing.

Pyxis Oncology, a US-based cancer therapy developer spun out of University of Chicago (UChicago), issued 10.5 million shares priced at $16 to raise $168m in an upsized initial public offering on Friday.

Although the price marks the top end of Pyxis’ range and shares opened at $18.88, they crashed to $13.20 by the end of the first day of trading on the Nasdaq Global Select Market, where Pyxis is now listed under PYXS.

Founded in 2018, Pyxis is developing antibody-drug conjugates (ADCs) and immunotherapies for cancers that are difficult to treat. It advances work by Thomas Gajewski, the AbbVie Foundation professor of pathology at UChicago.

Gajewski co-founded the spinout with John Flavin, then the associate vice-president of entrepreneurship and innovation at UChicago.

A total of $140m has been allocated to the preclinical development of the spinout’s three programmes and, should these be successful, the progression into the clinic. Capital is also going towards discovery programmes, the in-licensing of assets and other business activities.

Pyxis obtained $152m in series B funding in April 2021 co-led by Arix Bioscience and RTW Investments, with commitments from pharmaceutical firm Ipsen, its peer Pfizer’s corporate venturing unit Pfizer Ventures, and pharmaceutical and chemical group Bayer’s Leaps by Bayer division.

Perceptive Advisors, RA Capital Management, BVF Partners, Janus Henderson Investors, Cormorant Asset Management, HBM Healthcare Investments, Acuta Capital Partners, Ridgeback Capital Investments and Surveyor Capital also lined up cash for the series B round.

They were joined by Laurion Capital Management, Logos Capital, LifeSci Venture Partners, funds managed by Tekla Capital Management, Longwood Fund and Agent Capital.

Pyxis had attracted $22m in a series A round featuring UChicago’s Startup Investment Program – which supplied $300,000 – in 2019. That round was led by Leaps by Bayer and also included Ipsen, Longwood and Agent Capital.

Pfizer remains Pyxis Oncology’s largest shareholder following the IPO with an 8.8% stake, followed by Bayer (8.4%), Perceptive (4.7%), Arix and RTW (4.4% each), RA Capital (3.9%) and Longwood (3.7%).

BofA Securities, Jefferies, Credit Suisse Securities (USA), William Blair & Company and LifeSci Capital are the underwriters for the offering. They have been granted a 30-day option to purchase up to an additional 1.57 million shares.