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TPG-backed biotech Virobay withdraws $50 million IPO

October 31, 2014

Virobay, an early-stage biotech with a drug platform for pain and autoimmune diseases, withdrew its plans for an initial public offering on Friday. The company originally planned to raise $50 million during the week of October 13. 

Virobay's drug development platform is based on inhibiting cysteine cathepsins enzymes that are active in the biology of many diseases. Virobay has completed Phase 1 trials for treatments that target neuropathic pain, Crohn's disease, and psoriasis, all of which are expected to begin Phase 2 trials in 2015. It has partnered with LEO for its psoriasis indication, a disease that is also targeted by recent IPOs Vitae (VTAE), Dermira (DERM), Forward Pharma (FWP) and next week's Coherus BioSciences (CHRS).The company also plans to begin Phase 1 trials for NASH in 2015.

Primary shareholders include TPG (29% stake), Sutter Hill Ventures (27%), Alta Partners (26%) and AbbVie (16%).

The Menlo Park, CA-based company was founded in 2006 and booked $2 million in collaboration revenue for the 12 months ended June 30, 2014. It had planned to list on the NASDAQ under the symbol VBAY. Piper Jaffray and JMP Securities were set to be the joint bookrunners on the deal.