Zymeworks files 2nd amendment for up to US $83M IPO

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By Ted Liu

Zymeworks Inc., a clinical-stage biopharmaceutical company focused on the treatment of cancer, has filed a second amendment to its preliminary prospectus in connection with its proposed initial public offering.

Zymeworks intends to issue 4,500,000 common shares at an offering price of between US $13.00 and US $16.00 per common share for gross proceeds of between US $58.5 million and $72 million (all figures in US dollars).

If the granted over-allotment option of 675,000 common shares were to exercise in full, Zymeworks would receive up to $82.8 million at $16 per share, the top end of the price range, or up to $75 million at $14.50 per common share, the midpoint of the price range.

At $14.50 and immediately following the closing the IPO, Zymeworks would have 24,196,483 shares or 24,871,483 shares outstanding, if the over-allotment option is exercised in full. Zymeworks would be valued at $361 million.

Certain of existing shareholders, including Eli Lilly and Celgene, have indicated an interest in purchasing an aggregate of up to $42 million of common shares in this offering.

From inception in September 2003 through December 31, 2016, Zymeworks raised $115.5 million in equity financing. Eli Lilly (17.5%, pre-IPO), CTI Life Sciences Fund (14.6%), Ian Ihnatowycz (8.5%, through Advanced Biotechnologies Venture Fund (VCC) and First Generation Capital), and Celgene (6.1%) were the greater than 5% shareholders.

Eli Lilly has invested $37.8 million in equity in Zymeworks, leading the $61.5 million Series A closed in January 2016 with $12 million. The Series A was announced as co-led by BDC Capital ($10 million), Lumira Capital ($4 million).

Zymeworks’s other shareholders include Fonds de solidarité, Titan-Perc Ltd., Teralys Capital, Northleaf Venture Catalyst Fund, Brazyme LLC, Merlin Nexus, and MTS Securities.

photo credit: Zymeworks