Aprea Therapeutics, the US-based cancer treatment developer backed by healthcare provider Praktikertjänst, yesterday increased its initial public offering to nearly $97.8m after underwriters took up the over-allotment option in full.
The company had issued 5.7 million shares priced at $15 each last week, raising $85m and seeing shares rise more than a third to close at $20.50 on the first day of trading.
Shares closed at $18.94 yesterday, but having consistently traded above the IPO price, joint-booking running managers JP Morgan Securities, Morgan Stanley and RBC Capital Markets exercised their option to acquire all additional 850,000 shares.
Spun out of Karolinska Institute in 2003, Aprea is working on cancer drugs trying to reactivate the mutant p53 tumour suppressor, which is able to halt the formation of tumours. Lead asset APR-246 targets haematologic malignancies and ovarian cancer.
APR-246 has secured orphan drug designation from the US Food and Drug Administration (FDA) and the European Medical Agency for acute myeloid leukaemia, myelodysplastic syndromes (MDS) and ovarian cancer, and fast track designation from the FDA for MDS.
Some $20m to $30m of the proceeds will support phase 1b/2 trials of APR-246 and potential future studies if results prove favourable. Up to $10m will enable the preparation and submission of a new drug application with the FDA for the treatment in MDS, and another $10m to $15m will go to R&D activities for a second candidate, APR-548.
Karolinska Development, the investment firm set up by Karolinska Institute, contributed to a $62.8m series C round in February 2019 that also included Redmile Group, Rock Springs Capital, 5AM Ventures, Versant Ventures, Health Cap, Sectoral Asset Management and unnamed funds managed by Janus Henderson Investors.
Karolinska Development had already taken part in a $51m series B round in 2016, exchanging $7.2m of convertible notes. The round was co-led by Versant and 5AM Ventures, and also included Sectoral Asset Management and HealthCap.
Rosetta Capital and Btov Partners injected an undisclosed amount in 2013, following a $5.75m series A round backed by Karolinska Development in 2011.
Praktikerinvest, the corporate venturing division of Praktikertjänst, and Swedish state body Östersjöstiftelsen invested undisclosed sums in 2005, followed by an unspecified amount from Swedish government-owned investment unit Industrifonden two years later.
Versant and 5AM are Aprea’s largest stockholders, with their stakes having been diluted from 17.7% to 12.7%. The spinouts other notable investors are Karolinska Development (12.3% post-IPO), HealthCap (10.6%), Redmile (9.4%) and Sectoral Asset Management (7.4%).
