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AVEO Pharmaceuticals Files For IPO

AVEO Pharmaceuticals, Inc. announced that it has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission relating to its proposed initial public offering of up to $86.25 million of shares of common stock.

Cambridge, Massachusetts-based AVEO, a biopharmaceutical company focused on discovering, developing and commercializing novel cancer therapeutics, was incorporated under the laws of the State of Delaware on October 19, 2001 as GenPath Pharmaceuticals, Inc. and changed its name to AVEO Pharmaceuticals, Inc. on March 1, 2005.

The company said in the regulatory filing that it has applied for listing of its common stock on the NASDAQ Global Market under the symbol "AVEO". The company said it has not yet determined the number of shares to be offered and the price range for the offering.

Biogen Idec Inc. (BIIB) beneficially owns 14%, Entities affiliated with MPM Capital holds 10.7%, Entities affiliated with Highland Capital Partners holds 9.9%, OSI Pharmaceuticals, Inc. (OSIP) owns 6.8% of shares, before the offering.

For the nine-month ended September 30, 2009, the company posted net loss of $33.38 million, and generated revenue of $14.68 million.

AVEO said it plans to use the offering proceeds primarily to fund the development of its lead product candidate tivozanib. The company said it may also use a portion of the proceeds to support the research and development of other product candidates, and the balance, if any, for working capital and other general corporate purposes.

J.P. Morgan Securities Inc. and Morgan Stanley & Co. Inc. will be joint book-running managers of the proposed offering, Leerink Swann LLC will be the lead co-manager and Canaccord Adams Inc. will be a co-manager.

by RTTNews Staff Writer

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