US-based lung disease therapy developer AN2 Therapeutics, which counts pharmaceutical firm Brii Biosciences as a backer, has raised $69m in an initial public offering on the Nasdaq Global Select Market.
The offering involved the sale of 4.6 million shares, upsized from 4 million and priced at $15.00 each, in the middle of the offering’s $14 to $16 range. Its shares closed at $15.38 yesterday to give it a $288m market capitalisation.
Founded in 2018, AN2 is developing treatments for chronic and rare lung conditions including mycobacterial lung disease. It will use the proceeds to take its lead drug candidate, epetraborole, a daily broad-spectrum oral medication licensed from biopharmaceutical company Anacor Pharmaceuticals, through phase 2 and 3 trials before expanding it internationally.
Cowen and Company, SVB Securities, Evercore and Oppenheimer have been tapped as underwriters for the offering and they have the option to purchase an additional 690,000 shares over a 30-day period, amounting to almost $10.4m in additional proceeds.
RA Capital’s Healthcare Fund bought $25m in shares through the offering and has increased its stake from 14.2% to 19.6%. Adjuvant Global Health Technology, formerly the largest shareholder, acquired $2.5m in shares but its 17.2% stake was cut to 13.9%.
Anacor has a 7.3% stake diluted from 9.7% and Brii Biosciences’ stake was reduced from 8.4% to 6.3%, while BVF Partners purchased $10.5m in shares to hike its stake from 6.5% to 8.6% and MGC Venture Partners invested $4m to increase its stake from 5.3% to 5.4%.
Brii Biosciences invested in AN2 through a $12m series A round in 2019 that was followed by an $80m series B in March 2021 led by RA Capital that also featured Surveyor Capital, BVF Partners, Monashee Investment Management, Avidity Partners, Hatteras Venture Partners and unnamed existing investors.
