Aprea Therapeutics, a US-based cancer drug developer backed by healthcare provider Praktikertjänst, has filed to raise up to $68.3m in an initial public offering on the Nasdaq Global Select Market.
Founded in Sweden in 2003, Aprea is working on cancer treatments intended to reactivate the mutant p53 tumour suppressor protein, which helps prevent the formation of tumours.
The company’s lead asset, APR-246, is a late-stage candidate for haematologic malignancies, including acute myeloid leukaemia (AML) and myelodysplastic syndromes (MDS) – stem cell malignancies that can cause AML – as well as ovarian cancer.
The drug has secured orphan drug designation from the US Food and Drug Administration (FDA) and European Medical Agency for MDS, AML and ovarian cancer, as well as fast track designation from the FDA for MDS.
Proceeds from the offering will be allocated to the preclinical and clinical development of APR-246, including a phase 3 trial in MDS and ongoing phase 1b/2 trials in MDS and AML, as well as a phase 2 trial in post-transplant maintenance therapy for MDS and AML, and several AML clinical trials.
Aprea will also put the IPO proceeds towards the manufacturing of APR-246, while some cash will be set aside for the research and development of a second drug candidate, APR-548, and general R&D activities and working capital.
The company most recently closed a $62.8m series C round in February this year featuring Redmile Group, Karolinska Development, Rock Springs Capital, 5AM Ventures, Versant Ventures, Health Cap, Sectoral Asset Management and unnamed funds managed by Janus Henderson Investors.
Karolinska Development, the investment arm of Karolinska University, from which Aprea spun out, also took part in its $51m series B round in 2016 by converting $7.2m of outstanding loans. The round was co-led by Versant and 5AM Ventures, and included Sectoral Asset Management and HealthCap.
Details of Aprea’s series A funding remain unclear, but it was one of 13 Karolinska Development portfolio businesses to secure a share of $40m invested by Btov Partners and Rosetta Capital in 2013.
Praktikertjänst subsidiary Praktikerinvest had joined Östersjöstiftelsen, a Swedish government-founded body for Baltic and East European studies at Södertörn University, to invest an unspecified amount in 2005, before Swedish state-owned investment unit Industrifonden added an undisclosed amount in 2007.
The company’s largest shareholders are Versant Ventures and 5AM Ventures with a 17.7% stake each, followed by Karolsinka Development (17.2%), HealthCap (14.8%), Redmile (13.2%) and Sectoral Asset Management (10.4%).
JP Morgan Securities, Morgan Stanley and RBC Capital Markets have been appointed joint book-running managers for the offering.
The original version of this article appeared on our sister site, Global University Venturing.
