Jazz Pharmaceuticals, a Palo Alto, Calif. company that seeks to license drugs from other companies, buy other drug companies and develop its own drugs, all in the area neurology and psychiatry, has filed for a $172.5 million IPO.

Here is its filing. It is four years old, and lost $81 million last year.

This is largely a financial engineering strategy, and it will be interesting to see whether the public is willing to buy stock in such a risky business.

It plans to trade on the Nasdaq under ticker symbol JAZZ, with Morgan Stanley and Lehman Brothers serving as co-lead underwriters.

The company raised about $265 million in funding from KKR, Thoma Cressey Equity Partners, Beecken Petty O’Keefe & Co., Prospect Venture Partners, Versant Ventures, Golden Gate Capital, Lehman Brothers, Adams Street Partners, EGS Healthcare Capital Partners and Oak Hill Capital. KKR has the lion’s share, with a 46.25 percent ownership of the company.

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