San Diego’s latest biotech, Contineum Therapeutics, files to go public

San Diego's latest biotech, Contineum Therapeutics, files to go public

San Diego’s latest biotech, Contineum Therapeutics, files to go public Contineum Therapeutics filed to go public, making it San Diego’s second life science IPO of 2024 Contineum Therapeutics has filed to go public, becoming San Diego’s second biotech IPO of 2024. The company submitted its paperwork Friday with the Securities and Exchange Commission a little over a week after Boundless Bio filed San Diego’s first initial public offering of 2024. Contineum, which changed its name from Pipeline Therapeutics in November, is a clinical stage biopharmaceutical company developing therapies for the treatment of neuroscience, inflammation, and immunology, conditions such as lung scarring with no known cause, different forms of multiple sclerosis and depression. Founded in 2009, Contineum operates in the heart of San Diego’s biotech cluster at 10578 Science Center Drive. The company employed 31 full-time workers as of Dec. 31. This year, it is looking to submit a clinical trial authorization for its lead drug candidate, PIPE-791, a small molecule that penetrates the brain to address idiopathic pulmonary fibrosis, a disease that causes scarring of the lungs, and progressive multiple sclerosis. Last year, the company granted pharmaceutical giant Johnson & Johnson an exclusive, worldwide licensing deal to develop, manufacture and commercialize PIPE-307, a drug candidate for the potential treatment of depression and relapse-remitting multiple sclerosis. Contineum received an upfront payment of $50 million from J&J and is eligible to receive about $1 billion in milestone payments. The indication for depression is expected to move into Phase 2 trials this year. The local biotech is working on targeted cancer therapies for hard-to-treat tumors Contineum did not disclose in its filing with the SEC the proposed price of its shares or the amount of stock it will offer. It will trade on the Nasdaq Global Select Market under the ticker symbol “CTNM.” The biotech has historically funded its operations by issuing convertible promissory notes, private placements of its stock, the license agreement with J&J and a bank loan. As of Dec. 31, Contineum has raised gross proceeds of approximately $194 million and recorded a deficit of $75.1 million, according to the filing. The company reported net income of $22.7 million for the year ending Dec. 31, 2023, compared to the previous year when it recorded a net loss of $24.3 million. It has cash, cash equivalents and marketable securities worth $125.2 million, as of Dec. 31. Contineum increased its net cash flow by about $9 million between 2022 and 2023. The company projects that it will incur net losses for the foreseeable future. It did not disclose a timeline for when it expects the IPO funds to carry it through. Contineum expects to use the IPO proceeds to expand its operations and increase its headcount to fund research and development activities. The money will also be used to seek regulatory approval for its drug candidates, advance them through clinical trials, launch commercial activities and expand its pipeline of drugs. In recent months, big funding rounds and IPOs have been few and far between as young companies face a tougher investing environment compared to earlier in the pandemic. Contineum Therapeutics’ IPO is underwritten by Goldman Sachs & Co., Morgan Stanley, Stifel and RBC Capital Markets.

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