NEW YORK – Ideaya Biosciences on Wednesday announced an underwritten public offering of 7,619,048 shares of its common stock at $10.50 per share.
Ideaya has provided the underwriters a 30-day option to purchase an additional 1,142,857 shares at the same offering price. The company anticipates gross proceeds of around $80 million, or approximately $92 million if the underwriters exercise their option to purchase additional shares in full.
The offering is expected to close on Sept. 19. JP Morgan, Jefferies, Citigroup, and Guggenheim Securities are joint bookrunning managers for the offering, and Wedbush PacGrow is lead manager for the offering.
Ideaya, based in South San Francisco, California, will use the proceeds to fund clinical and preclinical development of its drug candidates against synthetic lethality, according to a filing with the US Securities and Exchange Commission. The funds will support ongoing clinical trials of its lead candidate, the PKC inhibitor darovasertib. In one study underway, Ideaya is studying darovasertib with Pfizer's ALK inhibitor Xalkori (crizotinib) in metastatic uveal melanoma, and in another trial, it is investigating darovasertib monotherapy in primary uveal melanoma. The proceeds may also fund a registrational trial of the darovasertib-Xalkori combination.
The proceeds could further support a Phase I trial of Ideaya's MAT2A inhibitor, IDE397, as a monotherapy for patients with metastatic solid tumors with MTAP deletions, along with preclinical studies exploring the drug's activity in combination with other drugs. Ideaya may also put the raised funds toward preclinical and clinical research of its other pipeline candidates targeting PARG, Werner helicase, Pol Theta, and DDT, and toward working capital and other general corporate purposes.
Last month, Ideaya reached a milestone in the preclinical development of its Pol Theta Helicase candidate in its ongoing collaboration with GlaxoSmithKline. Also in August, GSK waived rights to Ideaya's IDE397, though Ideaya will continue developing the drug on its own.