Altus Pharmaceuticals files for $115 million IPO of stock

By Ted A. Knutson

Washington, Oct. 17 - Altus Pharmaceuticals Inc. filed for an estimated $115 million initial public offering of common stock in an S-1 registration with the Securities and Exchange Commission.

The Cambridge, Mass.-based biopharmaceutical company is focused on the development and commercialization of oral and injectable protein therapeutics for chronic gastrointestinal and metabolic disorders, with two product candidates in clinical development.

Its two lead product candidates are ALTU-135, for which Atlus has completed a phase II clinical trial in cystic fibrosis patients for the treatment of malabsorption due to exocrine pancreatic insufficiency, and ALTU-238, for which the company is conducting a phase II clinical trial in adults for the treatment of growth hormone deficiency.

The firm's phase II clinical trial of ALTU-135 reached its primary efficacy endpoint, a statistically significant improvement in fat absorption.

IPO proceeds are targeted for drug development and general corporate purposes.

Merrill Lynch & Co. and Morgan Stanley are the joint-lead managers of the offering. SG Cowen & Co. is a co-manager.

As of June 30, the company had $40.75 million in cash and cash equivalents.

For the first six months of the year, Altus had contract revenue of $2.60 million and a net loss of $14.92 million.

Warburg Pincus Private Equity VIII LP is the leading shareholder with 9,128,820 pre-IPO shares, or 29.9% of the company's shares. Entities affiliated with U.S. Venture Partners of Menlo Park, Calif., hold 6,844,535 shares, or 23.1%, and Vertex Pharmaceuticals Inc. of Cambridge, Mass., holds 6,375,100 shares, or 19.1%.

Altus Pharmaceuticals said it will apply to have its stock quoted on the Nasdaq National Market under the symbol "ALTU."

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