Proteostasis Therapeutics, a US-based cystic fibrosis treatment developer backed by several healthcare companies, set the range for its initial public offering on Nasdaq at $12 to $14 on Monday.
The company, which counts pharmaceutical firms Novartis and Sanofi, as well as healthcare company Perrigo, as shareholders, plans to issue 3.85 million shares, which would place the size of the IPO between $46.2m and $53.9m.
If the underwriters choose to fully exercise their right to purchase up to 577,500 additional shares, the IPO would increase to between $53.1m and $60.8m. Unnamed existing backers intend to purchase additional shares to the combined value of $30m.
Founded in 2006, Proteostasis is developing a therapy for cystic fibrosis, a genetic disorder that affects between 70,000 and 100,000 people across the world. The condition is currently incurable and fatal, giving patients a life expectancy of about 40 years.
Proteostasis will use the proceeds to advance and expand the research and development of drug candidates for cystic fibrosis, and to advance one of them into phase 1 clinical trial and through to completion of a phase 2 clinical trial.
Novartis units Novartis Venture Fund (NVF) and Novartis Bioventures, together with Sanofi subsidiary Sanofi-Genzyme BioVentures and Elan Science One, a subsidiary of Perrigo, participated in the company’s $37m series B round in September 2015.
The series B round was led by Cormorant Asset Management and also featured Fidelity Biosciences, a VC arm of financial services conglomerate Fidelity Investments, Rock Springs Capital, New Enterprise Associates (NEA) and Healthcare Ventures.
Elan Science One was originally a subsidiary of drug maker Elan Corporation, which has since merged with Perrigo. It acquired a 24% stake in Proteostasis in return for a $20m equity investment and $30m of research funding in 2011.
Proteostasis closed a $70.6m series A round featuring NVF, Genzyme Ventures, Fidelity Biosciences, Healthcare Ventures and NEA the same year. It secured $5m in debt financing in 2014, according to a regulatory filing.
Elan Science One holds a 21.6% stake in Proteostasis that will be diluted to 16.7% in the offering. Novartis Bioventures holds 11.7%, which will be reduced to 9%, while Sanofi’s 5.8% stake will be diluted to 4.5%.
NEA will come out with a 13.1% stake, Healthcare Ventures 10.7% and Fidelity Biosciences, which has rebranded to F-Prime Capital since its investment, 9%.
Leerink Partners and RBC Capital Markets are serving as joint bookrunning managers for the IPO, while HC Wainwright and Robert W Baird are also acting as underwriters.