Applied Therapeutics, a US-based molecular drug developer backed by life sciences real estate trust Alexandria Real Estate Equities, has filed to raise up to $86.3m in an initial public offering.
Founded in 2016, Applied Therapeutics is working on therapeutics that are to treat fatal or debilitating diseases such as diabetic cardiomyopathy, a disorder that impacts the heart’s ability to circulate blood as a result of diabetes.
The IPO proceeds will fund a phase 2/3 clinical trial for Applied’s lead product candidate, AT-001, which is designed to treat diabetic cardiomyopathy, and phase 1 clinical trials of AT-003, a treatment for diabetic retinopathy, a condition related to diabetes that can cause blindness.
Additional proceeds from the offering will be used to finance phase 1 clinical trials of AT-007, a drug designed to treat galactosemia, a genetic metabolic disorder that affects the body’s ability to metabolise a sugar called galactose.
The company has raised approximately $35m in equity and debt financing to date. Alexandria Venture Investments, the venture capital subsidiary of Alexandria Real Estate Equities, led a $7m series A round for Applied in March 2017 with a $1.8m investment, according to the IPO filing.
E Squared Capital Management, ETP Global Fund, Syno Capital and private investor Franklin Berger also participated in the series A round. Applied closed a $25.1m series B round in February 2019, converting $6m of debt financing in February 2018 into equity in the process, the filing stated.
Alexandria Venture Investments is Applied’s largest shareholder, owning an 18.5% stake in the company, while hedge fund E Squared Capital owns 5.3%.
The offering is set to take place on the Nasdaq Global Market, and Citigroup, Cowen and Company, UBS Securities and Robert W. Baird have been appointed underwriters.