Clinical-stage oncology company Acrivon Therapeutics has planned to raise USD 99.4 million via an initial public offering (IPO) and private placement. The IPO consists of 7.55 million common shares priced at USD 12.50 per share. The firm also announced a concurrent sale of 400,000 shares at the IPO price in a private placement to existing investor Choine Limited. The company will begin trading on the Nasdaq Global Market on the 15th of November 2022 under the ticker symbol “ACRV”. 

The firm will also offer a 30-day option to purchase an additional 15% (1.13 million) of common shares at the same offer price. The offering and private placement will close on November 17, 2022, subject to closing conditions. Further, the joint book-running managers of the offering include Jefferies, Cowen, and Piper Sandler. 

The new funds from the IPO will be used towards advancing its lead drug candidate ACR-368 (previously prexasertib), a second-generation kinase inhibitor of the DNA Damage Response, currently in three Phase 2 clinical trials for treating patients with resistant ovarian, endometrial, and bladder cancer. The funds will also be used towards Phase 2 clinical trials of ARC-368 to treat HPV-positive tumors including head and neck cancers and to obtain an investigational new drug application for at least one of its preclinical programs. Any further funds available will be used to advance its precision medicine platform and for R&D activities, working capital, and general expenses.

The company expects its cash balance of USD 83.9 million (as of 30th June 2022) and the IPO funds will extend its cash runway till Q4 2024. It plans to raise additional funds for regulatory approvals and the commercialization of its drugs.