Kyverna Therapeutics, a clinical-stage biopharmaceutical company, has announced an increase in their proposed initial public offering (IPO). The company plans to offer 14.5 million common shares at a per-share price between $20 and $21. Originally, they had intended to offer 11.12 million shares at a price between $17 and $19.
The underwriters have also been granted an option to purchase up to an additional 2,175,000 shares. If the options are fully exercised, Kyverna expects net proceeds of approximately $314.1 million, with an estimated $272.6 million coming from the IPO itself.
These funds will be used to support the development of Kyverna’s lead experimental CAR T-cell therapy, KYV-101, for autoimmune diseases in rheumatology and neurology. Additionally, a portion will be allocated towards advancing their other experimental CAR T-cell therapy, KYV-201, through preclinical and clinical development stages.
Gilead Sciences currently holds a 12.2% stake in Kyverna, which will decrease to 7.9% after the IPO. The company has applied to list its common stock on the Nasdaq Global Market under the trading symbol KYTX.
However, Kyverna’s financial position raises concerns about its ability to continue as a going concern beyond September 30, 2023. As of that date, the company had an accumulated deficit of $115.4 million. With expected operating losses and negative cash flows, the management acknowledges that their existing cash and cash equivalents, totaling $77.3 million, may not be sufficient to fund planned operations for at least one year beyond September 30, 2023.
