Aldagen aims for $80.5 million IPO

Durham, N.C. — Biopharmaceutical startup Aldagen, which is focused on stem cell development, wants to go public.

With four products in the clinical stage of development, Aldagan said Monday it has filed the necessary paperwork for an initial public offering of stock worth $80.5 million.

If the IPO proves successful, Aldagen would trade on the Nasdaq under the symbol ALDH.

Aldagen's backers include Intersouth partners of Durhamn and The Aurora Funds, which is located in Research Triangle Park. Aldagen just closed on $18.4 million in venture financing in April.

Aldagen, which was launched under the name Stemco, announced a close of $9 million as part of a continuing “C” round last September. In December of 2006, Aldagen secured $17 million in funding, including $3 million in debt financing. The company has raised some $65 million in venture capital.

Wachovia Securities, Cowen & Co. and Pacific Growth Equities are leading the offering.

According to Private Equity Wire, Intersouth owns 41.6 percent of Aldagen followed by Harbert Venture Partners (14.7 percent), Aurora (12.3 percent), Tullis-Dickerson (9.3 percent) and Trelys Funds (5.4 percent).

The company’s products target chronic heart failure, critical limb ischemia, pediatric metabolic disorders, malignancies and leukemia. The firm has developed proprietary technology that enables the isolation and purification of stem cells that are then implanted in people suffering from a variety of illnesses. The body uses the stem cells to regenerate tissue, such as blood vessels.

ALD-101, the most advanced product, is in Phase III clinical trials. The treatment is designed to improve the effectiveness of cord blood transplants that are used to treat inherited metabolic diseases in pediatric patients.