CoLucid Pharmaceuticals, a US-based company working on a treatment for migraines backed by investors including pharmaceutical firm Novo, raised $55m in its initial public offering yesterday.
The company issued 5.5 million shares on Nasdaq priced at $10.00 each, below its $13-$15 range.
Founded in 2005 by venture capital firm Pappas Ventures, CoLucid’s lead drug candidate is an oral treatment for migraines called lasmiditan. The company secured $37m in a January 2015 series C round to fund a Phase 3 clinical trial for the treatment.
The series C round featured Novo’s corporate venturing arm Novo Ventures, and was led by TVM Capital Life Science. Pappas Ventures, Auriga Partners, Domain Associates, Care Capital, Triathlon Medical Ventures and Pearl Street Ventures also participated.
CoLucid has raised approximately $104m in total debt and equity financing according to regulatory filings and press releases. It will use $44.8m of the proceeds to fund further trials of lasmiditan, and the remainder will be used for general and administrative expenses.
Novo’s 18.2% stake in CoLucid was diluted to 11.6% in the offering. Domain Associates will remain its largest external shareholder, retaining a 14.9% stake post-IPO.
Pappas’ share will drop from 17.6% to 11.2%, Care Capital’s from 16% to 10.2%, TVM’s from 10.3% to 6.6% and Triathlon’s from 7% to 4.5%.
Piper Jaffray, Stifel, William Blair and Ladenburg Thalmann are serving as underwriters for the offering. They have been granted a 30 day option to purchase an additional 825,000 shares, which would increase the size of the IPO to $63.25m.