Contineum Therapeutics, headquartered in San Diego, has filed for an initial public offering (IPO), making it the city’s second biotech IPO in 2024.
The company, formerly known as Pipeline Therapeutics, focuses on developing therapies for various health conditions like lung scarring, multiple sclerosis, and depression.
Founded in 2009, Contineum operates in San Diego’s biotech hub and currently employs 31 full-time workers. They’re set to submit a clinical trial authorization for their lead drug, PIPE-791, targeting idiopathic pulmonary fibrosis and progressive multiple sclerosis.
Last year, they struck an exclusive licensing deal with Johnson & Johnson for another drug candidate, PIPE-307, receiving $50 million upfront and potentially $1 billion in milestone payments.
Contineum Therapeutics recently filed with the SEC for its IPO, but details about share price and stock offering size are not yet disclosed. The company plans to trade on the Nasdaq Global Select Market under the ticker symbol “CTNM.”
Previously, Contineum funded its operations through convertible promissory notes, private stock placements, a licensing agreement with J&J, and a bank loan. As of Dec. 31, it raised approximately $194 million but recorded a deficit of $75.1 million. In 2023, it reported a net income of $22.7 million compared to a net loss of $24.3 million the previous year. The company holds cash, cash equivalents, and marketable securities totaling $125.2 million as of Dec. 31.
While Contineum’s net cash flow increased by $9 million from 2022 to 2023, it still anticipates ongoing net losses. The IPO funds will be allocated to expand operations, increase headcount for research and development, seek regulatory approval for drug candidates, progress through clinical trials, launch commercial activities, and expand its drug pipeline.
The IPO, managed by Goldman Sachs & Co., Morgan Stanley, Stifel, and RBC Capital Markets, comes amid a challenging investing landscape for young companies, with fewer significant funding rounds and IPOs in recent months compared to earlier in the pandemic.
