Adimab looks to pay off VCs without IPO
K. Dane Wittrup, Errik Anderson and Tillman Gerngross, the founders of Adimab, crafted a plan in which the company would broadly disseminate antibody drug discovery technology across the industry to secure multiple paydays. Antibody drugs are used to attack precise biological targets and are a major part of the biotech industry, Xconomy.com reports.
"We wanted to know how we could monetize without selling the company," Gerngross said, according to Xconomy.com. "Based on our unique features, unique antibody libraries, we thought we could sell this essentially at least a couple of times. If it were true, we could create one of the very, very few privately held, highly profitable biotech companies."
The company has yet to record a full-year profit in its six years of operation, but Gerngross predicts that it will sign deals this year that will make the company profitable enough to pay back $40 million in capital through one massive round of dividend checks.
While it may take years for Adimab to prove itself, the company has already made several partnerships with area pharmaceutical companies.
The Cambridge, Mass.-based Merrimack Pharmaceuticals used the Adimab discovery platform to come up with three distinct antibodies that could effectively stop drug resistance in colorectal cancer. Adimab also collaborated with Cambridge-based Mersana Therapeutics to create antibodies against potent toxins.
"If you want something antibody or antibody-related, we are more and more becoming the one-stop shop," Gerngross said, according to Xconomy.com.