AVEO Pharmaceuticals, which is developing novel cancer therapeutics and planning a Phase 3 trial for its lead candidate tivozanib, announced terms for its IPO on Tuesday. The Cambridge, MA-based company plans to raise $98 million by offering 7 million shares at a price range of $13-$15. At the mid-point of the proposed range, the biotech will command a market value of $387 million. AVEO, which was founded in 2001, has generated roughly $170 million in revenue from strategic partnerships with Merck, OSI and Biogen Idec: $92 million from license fees, milestone payments and R&D funding and an additional $80 million in equity financing. Notable venture backers include MPM Capital (11%), Highland Capital Partners (10%), Venrock (8%) and Prospect Venture Partners (8%). AVEO's filing comes only three weeks after the listing of another Boston-based biotech, Ironwood Pharmaceuticals, which was the biggest biotech IPO in nearly eight years. AVEO plans to list on the NASDAQ under the symbol AVEO; IPO proceeds will be used to fund the Phase 3 clinical trial for tivozanib, for which commercialization is tentatively scheduled for 2013. J.P. Morgan and Morgan Stanley are the lead underwriters on the deal. Timing was not disclosed.