Houston-Based Bellicum Pharmaceuticals, Inc. Sets Terms For $100 Million IPO
December 12, 2014
By Krystle Vermes, BioSpace.com Breaking News Staff
Texas-based Bellicum Pharmaceuticals has officially set the pricing terms for its initial public offering, estimated between $15 and $17 on 6.2 million shares. In total, this brings its filing up to approximately $122 million.
The file with the U.S. Securities and Exchange Commission states that Bellicum will use its net proceeds to fund phase 1 and 2 trials of BPX-501, as well as preclinical trials of BPX-401, BPX-601 and BPX-701. The full details of Bellicum’s plans can be found in the report on the SEC website.
“Our primary uses of capital are, and we expect will continue to be, compensation and related expenses, third-party clinical research and development services, laboratory and related supplies, clinical costs, legal and other regulatory expenses and general overhead costs,” Bellicum stated in the report. “Specifically, we expect to use capital to repay the ARIAD note and expand our manufacturing capabilities.”
BPX-501 is being developed as an adjunct T-cell therapy, while BPX-201 is being created to serve as a cell cancer vaccine made from a patient’s own white blood cells. BPX-401, BPX-501 and BPX-701 are all product candidates being developed to treat a wide variety of cancers, including bladder, prostate and hematological cancer.
Advancements in Cell Signaling Technology
In order to move forward with several of the products in its pipeline, Bellicum Pharmaceuticals has needed to work closely with ARIAD Pharmaceuticals, Inc. As a result, the two restructured their license agreement back in October that allowed Bellicum to continue using ARIAD’s cell-signaling technology.
“This license restructuring allows Bellicum to fully exploit our specialized cell signaling switches and related platforms, free of future royalty or milestone obligations to ARIAD,” said Tom Farrell, Bellicum’s chief executive officer. “The expanded license also includes additional cell-signaling technology that may enable future products with dual control switches.”
ARIAD is now set to receive $50 million in three installments throughout 2016. The agreement with give Bellicum the chance to use the cell-signaling technology for human cell therapies on a royalty- and milestone-free basis.
“The amended agreement with Bellicum allows ARIAD to realize substantial non-dilutive funding from our legacy program based on small-molecule regulation of cell signaling, while maintaining our strategic focus on bringing breakthrough medicines to cancer patients in need,” said Harvey Berger, chairman and chief executive officer of ARIAD.