AveXis, a US-based neurological disease treatment developer that counts pharmaceutical firm Roche among its investors, raised $95m when it floated on Nasdaq yesterday.
The company issued 4.75 million shares priced at $20.00 each, in the middle of the $19 to $21 range it set last week.
AveXis is developing gene therapy treatments for rare and potentially fatal neurological genetic diseases. Its lead product candidate, AVXS-101, is currently in a phase 1 clinical trial for spinal muscular atrophy, a fatal genetic disorder that particularly affects infants.
The IPO proceeds will support the phase 1 trial as well as the establishment of a production facility that will support current and future trials for AVXS-101.
AveXis had raised approximately $82.5m in venture funding prior to the IPO, with Roche’s Roche Venture Fund unit co-leading a $10m series C round in January 2015 with Deerfield Management, after investment firm PBM Capital had provided earlier funding.
Roche Venture Fund returned for a $65m series D in September, investing alongside T. Rowe Price, Deerfield, Boxer Capital, Venrock, Janus Capital Management, Adage Capital Management, RA Capital Management, QVT Financial, Rock Springs Capital Management, Foresite Capital Management and RTW Investments.
Roche’s stake, held by its Roche Finance subsidiary, was diluted from 8.4% to 6.6% in the offering, while AveXis’ largest shareholder, PBM, retains an 11.7% share, down from 14.7%.
The company’s other notable shareholders are Deerfield, which holds a 7.8% stake post-IPO, JDH Investment Management (7.5%), White Rock Capital Partners and NRM VII Holdings (5.2% each), T. Rowe Price and Venrock (4.2% each).
Goldman Sachs and Jefferies are serving as joint book-running managers, while BMO Capital Markets is lead manager and Chardan co-manager.
The underwriters have the 30-day option to acquire another 712,500 shares, which would lift the size of the offering to approximately $109m. AveXis’ stock closed at $18.05 on its first day of trading.