Avalanche Biotech, a US-based developer of treatments for ophthalmic diseases, raised $102m from its initial public offering yesterday issuing 6 million shares priced at $17.00 each.
Regeneron Pharmaceuticals, a drug company that held an 8.2% stake in Avalanche, agreed to buy just under 590,000 shares through the offering for $10m, lifting its share slightly to 8.5%.
Other notable shareholders in the company include Zygtech, a holding company for investors the Wilf family, which retains a 12% stake, Venrock (9.2%), Fidelity Investments (6.2%) and Deerfield Management (4%). None sold shares through the IPO.
Avalanche will invest $35m of the proceeds to fund research and development for two product candidates designed to treat age-related ocular degeneration.
Avalanche raised $55m in a series B round in April this year funded by Venrock, Deerfield, Adage Capital Management, Redmile Group, Rock Springs Capital, Sabby Capital, two undisclosed ‘blue chip’ healthcare funds and an affiliate of Cowen and Company.
The company previously raised $5.7m in a November 2013 round, according to an SEC filing.
Avalanche floated at the high end of its $16-17 range, having previously intended to issue 5.4 million shares priced between $13 and $15. It opened on Nasdaq at $25.00 on Friday and rose to finish at $27.99.
Underwriters Jeffries, Cowen and Company, Piper Jaffray and William Blair & Company have the 30-day option to buy a further 900,000 shares, which would boost the size of the IPO to $117.3m.