US-based genetic medicine developer Akouos has filed for a $100m initial public offering on the Nasdaq Global Market, setting up pharmaceutical firm Novartis and healthcare provider Partners HealthCare for exits.
Founded in 2016, Akouos is developing precision gene therapies to combat the most common form of hearing loss, which is caused by inner ear disorders. Its lead asset, AK-OTOF, is aimed at hearing loss caused by mutations in the otoferlin (OTOF) gene.
Proceeds from the IPO would go to advancing the clinical development of AK-OTOF, initiating clinical development on a range of other candidates and supporting preclinical development. The company also intends to build up internal manufacturing capabilities.
Akouos has raised nearly $163m in funding to date, most recently closing a $105m series B round in March 2020 led by Pivotal BioVenture Partners, the life sciences fund formed by property developer Nan Fung, and backed by Novartis Venture Fund and Partners Innovation Fund, on behalf of Novartis and Partners HealthCare respectively.
The round also featured investment and financial services group Fidelity, Cormorant Asset Management, Cowen Healthcare Investments, EcoR1 Capital, Polaris Founders Fund, Wu Capital, Pagsgroup and Surveyor Capital, New Enterprise Associates (NEA), 5AM Ventures, RA Capital Management and Sofinnova Investments.
NEA and 5AM Ventures had co-led the company’s $50m series A round in 2018, investing with Novartis Venture Fund, Partners Innovation Fund, Sofinnova Ventures and RA Capital, having also co-led a $7.5m seed round the year before that marked Partners Innovation Fund’s first commitment to Akouos.
Novartis owns a 5.3% stake in the company. 5AM Ventures is its largest shareholder, with 21.6%, followed by NEA (18.6%), Pivotal BioVenture Partners (7.5%), Sofinnova and RA Capital (7.3% each) and Fidelity (5%).
BofA Securities, Cowen and Company and Piper Sandler have been appointed underwriters for the proposed offering.
