Novacea replaces joint bookrunner Credit Suisse with Cowen for upcoming IPO

By Angela McDaniels

Seattle, March 28 - Novacea Inc. removed Credit Suisse Securities LLC as a joint bookrunner for its upcoming $75 million initial public offering and added Cowan & Co. in its place, according to an S-1 registration with the Securities and Exchange Commission.

Bear, Stearns & Co. Inc. remains a joint bookrunner, and Pacific Growth Equities LLC and HSBC Securities Inc. remain co-managers.

Novacea filed for the IPO on Feb. 10. The number of shares to be offered and the price range for the offering have not been determined.

Novacea is a development-stage biopharmaceutical company based in South San Francisco that in-licenses, develops and commercializes therapies for the treatment of cancer and products that may reduce the toxicities associated with current treatments.

Novacea's in-licensed product development programs include three clinical-stage oncology product candidates: DN-101 is being evaluated in a phase 3 clinical trial for prostate cancer, vinorelbine oral is expected to enter into a phase 3 trial in late 2006 for the treatment of breast or lung cancer and AQ4N is expected to advance into a phase 1/2 clinical trial in the second half of 2006 for the treatment of glioblastoma multiform.

IPO proceeds will be used to fund product development, to pre-launch marketing preparation for product candidates, to identify and license new product candidates, for general corporate purposes and for working capital, according to the filing.

The company had 56,701,026 shares of common stock outstanding at March 1. Domain Associates LLC is the largest stockholder with 13,610,529 shares for 24.0% of the pre-IPO common stock total. New Enterprise Associates is second with 13,128,678 shares for 23.3% of the equity.

Novacea had a net loss of $23.81 million on $56,000 of grant revenue for the year ended Dec. 31. Cash, cash equivalents and marketable securities were $50.52 million at Dec. 31.

Research and development costs for 2005 were $14.69 million.

The company has applied to list its common stock on the Nasdaq National Market under the symbol "NOVC."

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