Starton Holdings, a Phase 2 developer of controlled release formulations for an approved cancer drug, lowered the proposed deal size for its upcoming IPO on Tuesday.
The Paramus, NJ-based company now plans to raise $30 million by offering 5 million shares at a price range of $5 to $7. The company had previously filed to offer 6.7 million shares at the same range. At the midpoint, Starton Holdings will raise 25% less in proceeds than previously anticipated and command a market value of $226 million.
Starton is a Phase 2 biotech applying continuous delivery technology to existing FDA-approved active ingredients in cancer treatments under the FDA's 505(b)(2) regulatory pathway. The company is focusing on hematologic malignancies, with its lead program, STAR-LLD, targeting multiple myeloma and chronic lymphocytic leukemia. STAR-LLD aims to develop both subcutaneous and oral controlled release formulations of lenalidomide, a generic form of Revlimid, to improve therapeutic outcomes. The company is also exploring the potential of combining STAR-LLD with CAR-T therapies and expanding into other cancer types, including B-cell lymphomas and solid tumors.
Starton Holdings was founded in 2017. It plans to list on the Nasdaq under the symbol STA. Revere Securities is the sole bookrunner on the deal.
