ARYx Therapeutics Inc. Sets Terms of IPO in Regulatory Filing with SEC

    By Christopher P. Singer --

As reported last Tuesday, October 23, 2007, ARYx Therapeutics set its planned initial public offering at 5 million shares for an estimated price of $14 to $16 each.  In the filing, ARYx indicated that Morgan Stanley, CIBC World Markets, Jefferies & Co, and Leerink Swann were underwriting the IPO.  At that price point, the company anticipates to raise about $67.8 million in proceeds after expenses.  The underwriters have the option to buy an additional 750,000 shares to cover over-allotments.  ARYx plans to list its stock on the Nasdaq under the symbol "ARYX".

ARYx has several drug candidates in clinical Phase II testing, which are based on its RetroMetabolic "ARM" technology.  This approach seeks to identify and design an "ideal metabolite" which is non-toxic, water soluble, and pharmacologically inactive and is not metabolized through a typical metabolic pathway.  This strategy avoids any metabolic "bottlenecks" and associated build-up of drug levels.