IPO Overview
Phase 2 oncology drug developer Starton Holdings files and sets terms for a $40 million IPO
Starton Holdings, a Phase 2 developer of controlled release formulations for an approved cancer drug, filed on Thursday with the SEC to raise up to $40 million in an initial public offering.
The Paramus, NJ-based company plans to raise $40 million by offering 6.7 million shares at a price range of $5 to $7. At the midpoint of the proposed range, Starton Holdings would command a fully diluted market cap of $262 million.
Company Overview
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.
The Paramus, NJ-based company was founded in 2017 and plans to list on the Nasdaq under the symbol STA. Revere Securities is the sole bookrunner on the deal.
Related News
November 6, 2023
Starton cancels merger deal with Healthwell Acquisition
The parties entered a definitive agreement in April 2023. Healthwell subsidiary HWEL Holdings agreed to acquire Starton and become a publicly traded company.
This deal was terminated after the criteria for closure of the initial merger and further amendments were neither met nor waived by 3 November 2023.
Starton Therapeutics chairman and CEO Pedro Lichtinger stated: “Over the last several months, Starton has taken significant, critical steps forward in its clinical development.
“We will work diligently to ensure we continue to drive our clinical efforts to meet the completion of this landmark study.
“We believe we are well-positioned to capitalise on this momentum to bring forth the power of continuous delivery technology to enhance therapeutic treatment for the betterment of patients.”
The clinical-stage biotechnology platform company leverages continuous delivery technology to update existing standard-of-care cancer treatments.
Starton’s transdermal technology can enhance approved drugs’ efficacy, making them more tolerable and potentially useable for other indications.
It recently launched the Phase Ib STAR-LLD clinical trial in multiple myeloma patients and dosed the first subject in October 2023.
The trial will analyse the efficacy and safety of improved delivery of lenalidomide for six to 18 months.