AAA Biom’Up rises with $45m IPO

Biom’Up rises with $45m IPO

Biom’Up, a France-based medical device developer backed by pharmaceutical firm Lundbeck and insurance provider Sham, flotated on the Euronext Paris market today, raising €38.1m ($45m).

The company priced more than 3.6 million shares at €10,50 each, in the middle of the IPO’s €9.50 to €11.50 range, and achieved a valuation of €113m.

The IPO proceeds could go up to €43.9m if underwriters Bryan, Garnier & Co and RBC Capital Markets exercise their option to purchase additional shares by November 9.

Founded in 2005, Biom’Up is working on collagen-based medical devices that can be absorbed by the body. The company’s products include Hemoblast Bellows, which combats bleeding during surgeries.

Hemoblast achieved regulatory approval in the European Union in December 2016, and Biom’Up is targeting regulatory approval in the US by mid-2018 before a commercial launch in the country by the end of that year.

More than half of the IPO proceeds will go towards the recruitment of commercial staff, primarily in the US. The remainder is reserved for increased R&D activities for other applications of Biom’Up’s Hemoblast technology, as well as for general corporate purposes.

Biom’Up raised $35.3m in series C capital in 2015 from investors including Lundeck’s corporate venturing arm, Lundbeckfond Ventures; Mérieux Développement, the investment arm of medical research holding firm Institut Mérieux; and Sham subsidiary Sham Innovation Santé.

The series C round also featured Bpifrance Large Venture and InnoBio Fund – investment vehicles for French state-owned investment bank Bpifrance – as well as Gimv, ACG Management, Sofimac, OTC Asset Management, Euroainvest and L’Améliane.

The company had previously received $7.7m in funding from Sham, Mérieux, Sofimac, L’Améliane, Aquasourca, InnoBio, OTC and Viveris Management. It has not revealed details of additional funding.

Bpifrance is Biom’Up’s largest external shareholder, with a 28.8% stake that has been reduced to 27.5% following the offering. The shares are split between Bpifrance Participations and InnoBio, which will respectively own 17.3% and 10.1% post-IPO.

Lundbeckfond Ventures’ stake will be diluted from 9.7% to 9.2%, while Sham Innovation Santé’s will drop from 7.2% to 6.9%. Other notable shareholders include Gimv, the owner of a stake that will be cut from 12.6% to 12%, and Fonds Viveris, which will own a 5% share, down from 5.3%.

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