ChemoCentryx raises $50M, eyes bleak IPO landscape for biotech

ChemoCentryx Inc., a biotech company that develops drugs to treat immune system ailments, got a $50 million payday from partner and major shareholder GlaxoSmithKline PLC in August. The plan last November was to raise $57.5 million through an IPO, but with only four VC-funded health care companies successfully going public this year — and all in the first quarter — it was time for an infusion.

The Mountain View, Calif.-based company is one of several biotech firms still languishing in line for the chance to go public. Omeros Corp., which develops treatments for nervous system disorders, filed for an IPO in January, but had to cobble together a $20 million debt facility last month, VentureWire reported. In the meantime, it seems these firms will just have to be patient.

GlaxoSmithKline owned about 13% of ChemoCentryx as of January, when it was listed as the company’s second biggest investor. The two struck a partnership in 2006, with GlaxoSmithKline bringing $63.5 million in cash and equity to the table, as well as research worth up to $1.5 billion. Now with ChemoCentryx’s top drug candidate, Traficet-EN — which targets Chrohn’s disease — in its final phases of testing, GlaxoSmithKline is poised to profit from the commercialization of the product.

Next Story: Lehman Bros. backs myShape amid death rattle
Previous Story: Proteus snaps up $30M to take on heart failure