AbSci, a US-based synthetic drug development platform backed by glassmaker AGC and pharmaceutical groups JSR Life Sciences and Merck & Co, has floated in a $200m initial public offering.
The offering entailed 12.5 million shares priced at $16 each on the Nasdaq Global Select Market. They closed at $21.59 on the first day of trading on Thursday to give the company a market capitalisation of almost $2bn.
Founded in 2011, AbSci has built an artificial intelligence-equipped drug discovery platform intended to help biopharmaceutical companies develop protein-based therapies. The IPO proceeds and its cash on hand will be used to improve its platform, advance its business development and potentially conduct strategic acquisitions.
The company raised $125m in a March 2021 crossover financing co-led by Casdin Capital and Redmile Group and backed by financial services and investment group Fidelity, D1 Capital Partners, Perceptive Advisors, aMoon Edge, Irving Investors and returning investors including ArrowMark Partners.
Merck & Co had provided an undisclosed sum for AbSci through its Global Health Innovation Fund the month before. Casdin Capital led the company’s $65m series E round in October 2020, investing with Redmile Group, ArrowMark Partners and Phoenix Venture Partners.
AbSci had received $10.4m in a series D round in January 2020 co-led by JSR Life Sciences and its KBI Biopharma unit that included WRF Capital, Phoenix Venture Partners, Oregon Venture Fund and Columbia Ventures Corporation.
AGC led the company’s $12m series C round in 2018, investing alongside WRF Capital, Phoenix Venture Partners, Oregon Venture Fund, Souther, Columbia Ventures and GreenBridge. Phoenix Venture Partners took in a series B round of undisclosed size for AbSci the previous year, having led its $5.1m series A in 2016.
Phoenix Venture Partners’ 21.1% stake was diluted to 16% in the offering. Entities affiliated with Casdin Capital and Redmile Group hold 6.8% each while company co-founder Mark Valasek has 6.1% and entities and individuals connected to Souther Investments 4.5%.
JP Morgan, Credit Suisse, BofA Securities, Cowen and Stifel are lead book-running managers for the offering and have a 30-day option to acquire nearly 1.9 million more shares which could boost the size of the offering to $230m.
