Imago BioSciences, a US-based cancer treatment developer which counts contract research organisation Pharmaron and pharmaceutical firms Celgene, Amgen and Merck & Co as investors, is floating today in a $134m initial public offering.
The company increased the number of shares in the offering from 7 million to 8.4 million and is issuing them on the Nasdaq Global Select Market priced at the top end of the IPO’s $14 to $16 range, impliying a market capitalisation of approximately $534m. Pharmaceutical firm Pfizer is investing $20m through a private placement.
Founded in 2012, Imago is focused on the development of small molecule drugs for life-threatening bone marrow diseases. Its lead therapeutic candidate, Bomedemstat, is a potential treatment for a group of bone marrow cancers called myeloproliferative neoplasms.
Approximately $50m of the IPO proceeds will go toward phase 2 and phase 3 clinical trials for Bomedemstat in patients with essential thrombocythemia, a condition in which the body produces too many platelets.
Imago will put about $10m into phase 2 clinical trials for Bomedemstat in a rare type of bone marrow cancer known as myelofibrosis, and has set aside about $5m for regulatory activities related to Bomedemstat and a further $5m for the development of the candidate in other indications.
The company had raised at least $161m of funding prior to the offering. Pharmaron Investments, Amgen Ventures and MRL Ventures took part in its $80m series C round in November 2020 on behalf of Pharmaron, Celgene, Amgen and Merck.
The round was led by Farallon Capital Management and also featured Irving Investors, Omega Funds, Surveyor Capital, Kingdon Capital Management, Frazier Healthcare Partners, HighLight Capital, Greenspring Associates and Xeraya Capital.
Funds and accounts advised by T Rowe Price, funds and accounts managed by Blackrock Advisors and an undisclosed fund managed by Blackstone Life Sciences filled out the list of series C participants.
Omega Funds led a $40m series B round for Imago in early 2019 that included Pharmaron, HighLight Capital, Greenspring Associates, MRL Ventures Fund, Amgen Ventures and Frazier Healthcare Partners. The last three had joined Clarus Ventures in Imago’s $40.5m series A round, which closed in 2017.
Imago’s largest shareholder, Blackstone Group’s Clarus Lifesciences III fund, is the owner of a 9.7% stake, diluted from 14.3%. Its notable shareholders include Frazier Healthcare Partners and Omega Funds (8.3% each), Farallon Capital Management (5.9%), Celgene (4.5%), BlackRock, T Rowe Price (4.4 each%), Merck & Co and Amgen (3.6% each).
Jefferies, Cowen, Stifel, Nicolaus & Company and Guggenheim Securities are joint book-running managers for the IPO. They have a 30-day option to purchase up to 1.3 million additional shares, potentially increasing its size to $154m.