* Largest ever financing by European biotech company
* Cash will help accelerate development of key cancer drug
* CEO hopes for IPO, but not before end 2012 or early 2013
(Adds CEO interview, comments on public listing)
By Ben Hirschler
LONDON, Jan 6 (Reuters) - Danish antibody drug developer Symphogen raised 100 million euros ($131 million) in the largest ever financing for a private European biotech company, giving it a cash cushion ahead of an eventual public listing.
Novo A/S -- majority shareholder in publicly listed Novo Nordisk and Novozymes -- led the funding round which consisted of a placement of preferred stock.
Existing shareholders Novo and Essex Woodlands each contributed 35 million euros, with the Danish Pension Fund PKA joining as a new investor, the company said on Thursday.
The new money will help Symphogen accelerate development of its leading cancer drug candidate Sym004, which started early-stage clinical development last April. The product will be studied initially as a treatment for advanced bowel cancer.
Chief Executive Kirsten Drejer said the hefty financial backing was particularly gratifying, given the tough funding environment for young biotech companies.
"There may be some loosening up right now, but in the last couple of years it has really been a bear market," she told Reuters.
The cash gives Symphogen flexibility as it considers its options for an initial public offering (IPO). "We would like to go public eventually. The good thing about this capital injection is now we can do it from a position of strength," Drejer said.
An IPO is unlikely, however, before the company sees solid mid-stage Phase II results with Sym004 at the end of 2012 or early in 2013, she said.
Symphogen also appointed Goran Ando -- former chief executive of British group Celltech, now part of UCB -- as its chairman.
Sym004 represents a new approach in drug development because it is a mixture of antibody types. It was initially licensed to Sweden's Orphan Biovitrum but the group handed rights back to Symphogen last month after deciding it could no longer afford to continue developing the early-stage medicine. (Editing by Elaine Hardcastle and David Holmes) ($1 = 0.7609 euro)