Salspera IPO: Oncology Company Files to Raise USD 85 Million in Nasdaq Listing
Salspera, Inc. (proposed Nasdaq: TKVA), a Cambridge, Massachusetts-based clinical-stage biopharmaceutical company, filed a prospectus for an initial public offering of 5,666,666 shares of common stock at an expected price range of USD 14.00 to USD 16.00 per share. At the midpoint Salspera IPO price of USD 15.00, the offering would generate approximately USD 85 million in gross proceeds. The Salspera public offering centers on the company's development of a live biopharmaceutical platform using genetically modified Salmonella Typhimurium to deliver immunotherapeutic agents directly into tumor microenvironments, with a lead candidate currently entering Phase III development in Stage IV metastatic pancreatic cancer.
Financial Terms of the Salspera Stock Offering
The Salspera Inc IPO is structured as a firm commitment underwritten offering. Following completion, the company expects approximately 62,538,712 shares of SALSPERA common stock to be outstanding. The underwriters have been granted a 45-day over-allotment option to purchase up to an additional 850,000 shares, which would bring total shares outstanding to 63,388,712 if exercised in full. Net proceeds to the company are estimated at approximately USD 78.44 million after deducting underwriting discounts, commissions, and offering expenses. Prior to this offering, there has been no public market for the company's shares. Salspera has applied to list its common stock on the Nasdaq Stock Market under the ticker symbol "TKVA," though the company has stated that the offering will not be consummated if the listing application is not approved. Executive officers, directors, and other holders of outstanding shares have agreed to a 180-day lock-up period following the effective date of the registration statement. The company qualifies as an emerging growth company under the JOBS Act.
Company Overview and Pipeline
Salspera was formed as Salspera, LLC, a Minnesota limited liability company, in July 2017 and converted to a Delaware corporation in November 2021. The company was co-founded by Eddie Moradian, PhD, who serves as Executive Chairman and Chief Executive Officer, and Daniel Saltzman, M.D. and PhD, who serves as Chief Medical Officer. Dr. Saltzman originated the company's technology platform and previously held the position of Chief of Pediatric Surgery at the University of Minnesota. He has authored 30 publications and 17 presentations on bacterial therapeutics.
The company's lead candidate, Saltikva, is an attenuated strain of Salmonella Typhimurium engineered to express human interleukin-2 (IL-2). The strain is rendered avirulent through deletion of cya and crp genes and lacks the enzyme aspartate semialdehyde dehydrogenase, creating a containment mechanism whereby the bacterium cannot survive without its engineered plasmid. Saltikva is orally administered and designed to increase populations of NK and CD8+ cytotoxic T cells within tumor microenvironments.
Salspera has completed a Phase I study evaluating safety of orally administered Saltikva across oncology indications including pancreatic cancer and osteosarcoma. The company subsequently conducted a Phase II clinical trial of Saltikva in combination with modified FOLFIRINOX chemotherapy in patients with Stage IV metastatic pancreatic cancer. In that Phase II study, the company reported observations of lower tumor burden and increased progression-free survival and overall survival in treated patients. For context, patients with Stage IV metastatic pancreatic cancer on standard-of-care chemotherapy regimens (GEM/nab-PTX, FOLFIRINOX, or NALIRIFOX) have median overall survival ranging from 10.4 to 11.7 months, according to data cited in the prospectus.
Salspera is now entering Phase III clinical development for Saltikva in Stage IV metastatic pancreatic cancer. A Type C meeting with the FDA provided the company with a framework for the Phase III study design, which is expected to be a randomized, placebo-controlled trial. Recruitment is planned across the United States, the European Union, Australia, and Israel. The company anticipates patient recruitment could be completed within two years of study initiation, with interim results available as early as two years after commencement.