Aldagen, a developer of regenerative therapies based on stem cell technology, has withdrawn its plans for an initial public offering of stock.
In a filing with the SEC, Aldagen Chief Executive Officer Lyle Hohnke cited “market conditions” as the reason.
Aldagen had hoped to raise more than $80 million. It filed for the IPO in the fall of 2009 after cancelling a previously planned IPO a year earlier.
In the filing, Hohnke wrote: “[D]ue to market conditions and its determination that registration of the Company’s securities is not in the best interest of the Company at this time. No shares of common stock of the Company have been or will be issued or sold under the Registration Statement.”
Tranzyme (Nasdaq: TZYM), which also is based in Durham, managed to execute its IPO on Monday – but only after drastically cutting its share price to $4 from a hoped-for $11 or more. (Read details here.)
Aldagen has several potential drugs under clinical development. It is focused on adult stem cells.
Backed by regional venture capital firms Intersouth Partners, Aurora Funds and Trelys Funds along with Harbert Venture Partners and Tullis Dickerson, Aldagen closed on $18.4 million in venture financing in April of 2008.
Aldagen, which was launched under the name Stemco, has raised some $65 million in venture capital.
Aldagen is using umbilical cord blood.
The company utilizes proprietary technology that isolates stem cells that have high levels of the enzyme ALDH which could promote new growth of cells and tissues.
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