Axcella Health, a US-based biotechnology drug developer backed by food and beverage conglomerate Nestlé’s nutritional therapy subsidiary, Nestlé Health Science, has filed for an $86.3m initial public offering.
Founded in 2010 as Pronutria Biosciences, Axcella is developing therapies for conditions caused by a dysregulated metabolism. Its lead drug candidate, AXA1665, targets hepatic encephalopathy, a syndrome consisting of neuropsychiatric abnormalities in patients with cirrhosis of the liver.
Proceeds from the offering will be used to advance AXA1665 and two other liver-focused programs through investigational new drug filings and clinical trials, boosting the capabilities of Axcella’s drug discovery platform and driving company growth.
Axcella has raised approximately $172m in funding to date, revealing in its regulatory filing that it secured $59m in series E funding from undisclosed investors in November 2018, and $42.5m in series D funding from Nestlé Health Science in 2016.
Investment and financial services group Fidelity Management and Research had led a $39m series C round for the company in 2015 that also featured Flagship Ventures, the venture capital arm of company builder Flagship Pioneering, which launched Axcella.
Nestlé Health Science currently owns a 10.4% stake in the business, while Flagship Pioneering is its largest shareholder, with a 42.5% share. Fidelity owns 13.1% and healthcare investment fund Gurnet Point Capital holds 6.7%.
Goldman Sachs, JP Morgan Securities and SVB Leerink have been appointed joint bookrunning managers for the proposed offering, which is set to take place on the Nasdaq Global Market.
