AAA Principia Biopharma primes $86m IPO

Principia Biopharma primes $86m IPO

Principia Biopharma, a US-based cancer and autoimmune treatment developer backed by pharmaceutical firm GlaxoSmithKline (GSK), has filed for an $86.3m initial public offering on the Nasdaq Global Market.

Founded in 2008, Principia is developing oral treatments for cancer and autoimmune diseases intended to be as efficient as injectable drugs. Its drug discovery platform, Tailored Covalency, is based on technology licensed from University of California San Francisco.

The company’s lead drug candidate is PRN1008, which is undergoing phase 2 clinical trials for a rare skin disorder called pemphigus that leads to blisters and sores, and for immune thrombocytopenic purpura, a syndrome that causes easy bruising and bleeding.

Principia is also working on a therapy called PRN2246 for multiple sclerosis and other central nervous system disorders, and on PRN1371, a prospective treatment for solid tumours.

Proceeds from the offering will fund the completion of phase 2 trials for PRN1008 and support the commencement of phase 3 trials, as well as obligations under a licensing agreement with pharmaceutical firm Sanofi for PRN2246 and a phase 1 trial for PRN1371.

The IPO filing revealed that Principia closed a $50m series C round this month featuring GSK subsidiary SR One.

New Leaf Venture Partners, OrbiMed Advisors, Morgenthaler Ventures, Sofinnova Venture Partners, HBM Healthcare Investments, RTW Investments, Samsara BioCapital, Cormorant Asset Management and entities affiliated with Baker Bros Advisors also took part in the round.

The company had raised $15.3m in a 2015 series B-3 round backed by SR One, New Leaf, Morgenthaler, Sofinnova, entities affiliated with Baker Bros, CEO Martin Babler, who also contributed to the series C, and chief medical officer Steve Gourlay.

SR One also invested in Principia’s $50m series B round, which was led by Sofinnova and backed by Morgenthaler, New Leaf, OrbiMed and Mission Bay Capital, in 2014. The same consortium had provided $40m in series A capital for the company in 2011.

SR One, Morgenthaler, New Leaf and OrbiMed each own 16.8% stakes in Principia, while Sofinnova and Baker Bros both hold 12.3% stakes. Bank of America Merrill Lynch, Leerink Partners and Wells Fargo Securities are joint bookrunners for the proposed offering.

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