Clementia Pharmaceuticals, a Canada-based bone disease therapy developer backed by biopharmaceutical company UCB Pharma, has filed for a $115m initial public offering in the US.
Clementia is working on treatments for patients suffering from bone diseases and other conditions with a high unmet medical need. Its lead candidate, palovarotene, aims to prevent abnormal new bone and scar tissue formation.
The company is aiming to launch phase 3 and phase 2/3 clinical trials for palovarotene this year, with results expected in 2019 and 2020.
The clinical trials will target two separate indications: an extremely rare connective tissue disease called Fibrodysplasia ossificans progressive and multiple osteochondromatosis, a rare condition that causes the formation of bony lumps on the bones of a child.
The proceeds from the flotation will be used to fund the trials, as well as phase 1 and phase 2 clinical studies into using palovarotene for the treatment of dry eye disease. The money will also serve as working capital and other general corporate purposes.
Clementia raised $60m in a 2015 series B round led by New Enterprise Associates (NEA), that included UCB, Rock Springs Capital Management, RA Capital Management, EcoR1 Capital, OrbiMed Advisors, a fund advised by Janus Capital Management and BDC Capital.
OrbiMed and BDC Capital, the investment arm of the state-owned Business Development Bank of Canada, had previously taken part in a $32.5m series A round for Clementia in January 2015. OrbiMed is Clementia’s largest shareholder, with a 42.7% stake, while BDC Capital has a 22.9% share and NEA 8.1%.
Morgan Stanley and Leerink Partners are acting as representatives of the underwriters, which also include Wedbush Securities and BTIG.
– The original version of this article appeared on our sister site, Global Government Venturing.