ARYx Files for IPO

NEW YORK (AP) – Biopharmaceutical company Aryx Therapeutics Inc. plans an initial public offering of its common stock, according to a regulatory filing Thursday with the Securities and Exchange Commission.

Aryx did not disclose the expected number or price range of shares to be offered, but indicated the offering price could total up to $86.3 million.

The Fremont, Calif.-based company said its drug candidates are based on well-established, commercially successful drugs, but are designed to be metabolized through a potentially safer pathway. Aryx said its drug design will help avoid adverse side effects associated with the original drugs.

Aryx's most advanced product candidate, which is based on cisapride, has successfully completed Phase 2 clinical trials to treat multiple gastrointestinal disorders. Aryx has agreed to collaborate with Procter & Gamble Pharmaceuticals Inc. to develop and commercialize the drug.

For the six months ended June 30, Aryx narrowed its loss to $12.2 million, from $18 million in the same period of 2006. The company also increased its revenue to $2.1 million, from no recorded revenue in the prior-year period.

Aryx plans to use the net proceeds from the offering for general corporate purposes, including clinical trials, research and development, general and administrative and manufacturing expenses and potential acquisitions.

Aryx said the total offering price was estimated solely to calculate its registration fee and may change.

Morgan Stanley, CIBC World Markets, Jefferies and Company and Leerink Swann are underwriting the offering.

Aryx plans to list its shares on the Nasdaq Stock Market under the symbol “ARYX.”

peHUB Note: ARYx has raised over $110 million in total VC funding since its 1997, from firms like MPM Capital (26.1% pre-IPO stake), Nomura Phase4 Ventures (19.5%), OrbiMed Advisors (14.6%), Ascent Biomedical Ventures, BioMed, JAFCO Life Science Investments, Scottish Widows Investment Partnership, Montreux Equity Partners and Novel Bioventures.