Acacia to raise $232m on IPO

Acacia Pharma plans to raise about 150 million pounds by selling new shares in an IPO to fund the development of four medicines.

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London - Acacia Pharma plans to raise about 150 million pounds ($232 million) by selling new shares in an initial public offering to fund the development of four medicines designed to quell post-surgery and post-chemotherapy symptoms such as vomiting for cancer patients.

The drugmaker, founded in 2007 in Cambridge, England, will have at least 25 percent of its stock trading on the London Stock Exchange after the sale in October, it said in a statement on Monday. Acacia may sell another 15 percent if there’s demand.

The company didn’t specify the number of shares it will sell or the price it’s seeking, though a spokesperson said the company aims to raise 150 million pounds.

The proceeds will help bring the company’s two lead products, nausea drugs in mid-stage and advanced clinical research, to market, the company said.

“Acacia Pharma has a strong pipeline of four product candidates and a clear plan to market them through our own U.S. sales organization,” CEO Julian Gilbert said in the statement. “I am excited by the prospect of the growth that can be supported by the planned IPO.”

Before co-founding Acacia, Gilbert was co-founder and commercial director of Arakis, which was sold to Sosei Group in 2005 for 107 million pounds ($165 million).

JPMorgan Chase & Co is managing the IPO along with Canaccord Genuity.

Since its founding, Acacia has raised about 35 million pounds from Lundbeckfond Invest, Novo, Beacon Bioventures Fund III Partnership and Gilde Healthcare Partners.

BLOOMBERG