Eli Lilly, CTI Life Sciences backed Zymeworks files for US $75M IPO

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By Ted Liu

Zymeworks Inc., a clinical-stage biopharmaceutical company focused on the treatment of cancer, has filed for an initial public offering for up to US $75 million (base for calculating filing fees with SEC). (all figures in US dollars)

Zymeworks has applied to list its common shares on the New York Stock Exchange (NYSE) and intends to apply to list its common shares on the Toronto Stock Exchange (TSX), under the ticker symbol “ZYME” for both exchanges.

Citigroup Global Markets Inc., Barclays Capital Inc. and Wells Fargo Securities, LLC are acting as joint book-running managers for the offering. Cannacord Genuity Inc. is acting as a lead manager. Cormark Securities (USA) Limited is acting as a co-manager.

Blake, Cassels & Graydon LLP and Skadden, Arps, Slate, Meagher & Flom LLP act as Canadian and US legal counsel to Zymeworks respectively. McCarthy Tétrault LLP and Cooley LLP act as legal counsels to the underwriters.

From inception in September 2003 through December 31, 2016, Zymeworks raised $115.5 million in equity financing. Through December 31, 2016, Zymeworks had an accumulated deficit of $97.8 million, reported a net loss of $33.8 million for the year ended December 31, 2016.

Zymeworks’ major shareholders/backers include 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%).

Zymeworks’s other investors include BDC Capital, Lumira Capital, Fonds de solidarité, Perceptive Advisors, Teralys Capital, Northleaf Venture Catalyst Fund, Brace Pharma Capital, Merlin Nexus.