Palo Alto pain management startup Carbylan vies for $86M IPO

Carbylan CEO David Renzi

Biotech startup Carbylan Therapeutics is looking to raise $86 million in an IPO to support its injectable osteoarthritis pain treatment, which is currently in Phase III with another late-stage trial on the way in mid-2015.

According to the company's SEC filing Monday, its Hydros-TA candidate is an intra-articular injectable painkiller that combines short-term and long-term relief for osteoarthritis of the knee using the company's own cross-linked technology. Current treatments, the company said, include corticosteroids for short-term relief and viscosupplements for longer-term pain management, but Carbylan's cross-linked delivery method allows for a one-injection treatment that includes both the corticosteroid triamcinolone acetonide and a hyaluronic acid viscosupplement. In Phase II the injection showed better pain reduction at all points than Sanofi's ($SNY) market-leading viscosupplement Synvisc-One.

As reported in the Silicon Valley Business Journal, Carbylan has raised funding of $31 million since 2005, the biggest stakeholders being InterWest Partners, Alta Capital Partners and Vivo Ventures. The company has accumulated a deficit of $43 million since the end of September, $8 million of which occurred in the first 9 months of 2014.

Currently, Carbylan has no other products for sale and is devoted entirely to Hydros, for which it's expecting the ongoing Phase III results in mid-2015 and the second trial's outcome at the end of the year. According to the filing, though, the candidate is "potentially best-in-class."

The company would be listed on the Nasdaq under the symbol "CBYL."

- here's the SEC filing
- and here's the Silicon Valley Business Journal report