Biotech Values

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G1 IPO (better CDK4/6?)

https://endpts.com/hey-pfizer-novartis-and-eli-lilly-g1-therapeutics-says-it-can-beat-all-of-you-in-its-115m-ipo/

Hey Pfizer, Novartis and Eli Lilly. G1 Therapeutics says it can beat all of you in its $115M IPO

by john carroll
April 18, 2017 10:14 AM EDT
Updated: 02:51 PM

It’s been almost a year since G1 Therapeutics completed a $47 million crossover round. But now the cancer drug developer says it’s ready for a $115 million IPO, jumping into a growing queue on Wall Street with a plan to take on some of the giants in the biopharma business.

Research Triangle Park, NC-based G1 is aimed at a well known target in cancer research: CDK 4/6. Pfizer scored the pioneering OK for their blockbuster drug in 2015, fielding Ibrance. And Novartis followed up recently with Kisqali (peak sales potential around $2.5 billion), setting up a direct clash as Eli Lilly pursues its own program for abemaciclib.

So where does little G1 fit into this picture?

CEO Mark Velleca and the crew at G1 feel they have started down the path to developing CDK 4/6 drugs that can do much better than the first wave in tackling cancer. Ibrance is closely linked with neutropenia, forcing physicians to give the drug on an intermittent schedule with time off to help patients handle the side effects. G1 believes its IV CDK 4/6 is a first-in-class contender that can supersede the frontrunners on the market. And it has an oral CDK 4/6 in development for daily dosing with a preclinical therapy looking to enter the clinic soon.

These drugs, says G1 in the S-1, are also prime for partnering with a wide range of approved therapies.

The lead drug, trilaciclib, is in three clinical trials—two Phase Ib/IIa trials and a Phase II trial. G1 has burned through $65 million to get to this point.

Hatteras Venture Partners owns the biggest chunk of equity, at 19.8%. They are followed by MedImmune Ventures (16%), Eshelman (15%) and RA Capital (10%). Velleca owns a little less than 3% of the company.