Neon Therapeutics Closes in on IPO

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Neon Therapeutics filed an amended S-1 form Friday with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering. The company intends to price its 6.25 million shares in the range of $15 to $17, with an overallotment option for an additional 937,500 shares. At the maximum price, the entire offering is valued up to $122.19 million. The company intends to list its shares on the Nasdaq Stock Market under the symbol NTGN.

The underwriters for the offering are Morgan Stanley, Merrill Lynch, Mizuho Securities, and Oppenheimer.  The stock is expected to price during the week of June 25.

This is a clinical-stage immuno-oncology company based in Cambridge, Mass., and is involved in the field of neoantigen-targeted therapies, dedicated to transforming the treatment of cancer by directing the immune system toward neoantigens.

Genetic mutations, which are a hallmark of cancer, can result in specific immune targets called neoantigens. The presence of neoantigens in cancer cells and their absence in normal cells makes them compelling, untapped targets for cancer therapy. By directing the immune system toward these targets, Neon Therapeutics believes its neoantigen-targeted therapies will offer a new level of patient and tumor specificity in the field of cancer immunotherapy that will drive a strong risk-benefit profile to dramatically improve patient outcomes.

In the filing the firm said:

NEO-PV-01, our personal neoantigen vaccine, is custom-designed and manufactured based on the unique mutational fingerprint of each individual patient… NEO-PV-01 is currently being evaluated in an ongoing Phase 1b clinical trial in combination with nivolumab in metastatic melanoma, non-small cell lung cancer and bladder cancer. The clinical data so far from this trial demonstrates that the therapy has been well-tolerated and has been able to direct the immune system against neoantigens in advanced metastatic disease. Furthermore, we have observed both evidence of immune pressure on tumors and of tumor cell killing. We believe these findings provide emerging proof of mechanism and will inform our NEO-PV-01 clinical development plans.

Neon Therapeutics, founded in 2013, intends to use the net proceeds from this offering to further develop NEO-PV-01, with the remainder going to working capital and general corporate purposes.