Acromegaly biotech Chiasma files for a $86 million IPO

Chiasma, a late-stage biotech developing an oral drug candidate for acromegaly, filed on Monday with the SEC to raise up to $86 million in an initial public offering.

The company's lead candidate, oral octreotide, has completed Phase 3 clinical testing, and an NDA for the drug was submitted in June 2015. In the trial, 65% of patients met the primary endpoint. Chiasma had licensed oral octreotide to Roche in December 2012, but Roche terminated the license agreement in July 2014.

Chiasma's CEO, Mark Leuchtenberger, led development of Biogen's first commercial product, Avonex, which reached $3 billion in sales. Investors in Chiasma include MPM Capital, Fidelity Securities, Abingworth, 7 Med Health Ventures, F2 Capital, ARCH Venture Partners, Sofinnova Ventures and Rock Springs Capital. Since inception in 2001, the company has raised $260 million, including $86 million from Roche and $70 million in a Series E financing from December 2014 to February 2015.

The Newton, MA-based company, which was founded in 2001 and booked $9 million in sales for the 12 months ended March 31, 2015, plans to list on the NASDAQ under the symbol CHMA. Chiasma initially filed confidentially on 4/17/2015. Barclays and Cowen & Company are the joint bookrunners on the deal. No pricing terms were disclosed.