NEW YORK – RayzeBio said on Tuesday it raised $358 million in an upsized initial public offering and began trading on the Nasdaq Global Market last week under the symbol "RYZB."
The San Diego-based firm sold 19,869,240 shares of common stock in the IPO, including the full exercise of the underwriters' option to purchase up to 2,591,640 additional shares at a price of $18.00 per share. Within the IPO, a stockholder also sold 1,163,000 shares of common stock and the firm did not receive any proceeds from the stockholder sale.
RayzeBio said the gross proceeds from the IPO, before deducting underwriting discounts and commissions and other offering expenses payable, were $336.7 million. In a filing with the US Securities and Exchange Commission, RayzeBio said it planned to use the proceeds to advance its pipeline of targeted radiopharmaceuticals, including its lead candidate RYZ101, which targets the somatostatin receptor (SSTR), and its earlier stage candidates targeting GPC3.
The firm said in the filing it will use between $65 million and $75 million to advance clinical development of RYZ101 through top-line data in the Phase III trial in gastroenteropancreatic neuroendocrine tumors expressing SSTR. The firm also plans to use between $8 million and $10 million to support a Phase I trial of RYZ101 plus chemo and Genentech's Tecentriq (atezolizumab) in SSTR-expressing extensive-stage small cell lung cancer.
For its GPC3-targeted candidates, RYZ801 and RYZ811, RayzeBio will use between $20 million and $25 million to support investigational new drug (IND)-enabling activities and clinical development through Phase Ib safety data in hepatocellular carcinoma.
The firm also said it would use $35 million to $40 million to complete construction of its good manufacturing practices (GMP) radiopharmaceutical manufacturing facility in Indianapolis, including capital expenditures. The remaining proceeds will be used for working capital, additional research and clinical development, and other general corporate purposes. RayzeBio said the proceeds from the IPO together with its existing cash will not be sufficient to bring any of its candidates through regulatory approval, and it expects to raise additional capital to complete the development and commercialization of its pipeline.