Xanodyne Cancels IPO

Xanodyne Pharmaceuticals Inc., a Florence, Ky.-based drug company, has withdrawn registration for an $86.25 million IPO due to “market conditions.” It had planned to trade on the Nasdaq, with Morgan Stanley and Deutsche Bank Securities serving as co-lead underwriters.

The company has raised around $232 million in total VC funding, including a $170 million Series A-1 round in 2005 that helped finance the $210 million acquisition of aaiPharma’s pharmaceutical division out of bankruptcy.

Shareholders include Apax Partners (23.2% pre-IPO stake), MPM Capital (21.3%), AIG (10.9%), Essex Woodlands Health Ventures (10.7%), HealthCare Ventures (10.3%), Aisling Capital (9.5%) and Blue Chip Venture Co. (7.8%). www.xanodyne.com