Pharmaceutical firms Johnson & Johnson and AbbVie could buy $55m of shares in Belgium-based, corporate-backed biotechnology company Galapagos when it goes public in the US.
Galapagos, which is already listed in Euronext Brussels and Euronext Amsterdam, initially filed for a $150m Nasdaq offering in April 2014, but its latest filing indicates the company is now seeking $230m.
AbbVie, a partner of Galapagos, is considering buying up to $30m of stock through the offering. Johnson & Johnson, already a shareholder in the company, has expressed an interest in acquiring $25m of shares in the IPO.
AbbVie is collaborating with Galapagos on the development of a treatment for the chronic inflammatory disease rheumatoid arthritis and is expected to make a decision on whether to license the drug for $200m in the second half of this year.
The drug, Filgotinib, proved very successful in a recent, second Phase 2b trial, and the positive result has already increased Galapagos’ market cap on the European exchanges.
Johnson & Johnson currently holds a 7.6% stake in the company, while financial services conglomerate Capital Group owns 5%. Van Herk Investments, the venture capital unit of residential, retail and commercial real-estate company Van Herk Group, holds 5.1%.
Galapagos is also working on treatments for cystic fibrosis, a genetic disorder affecting the lungs and leading to breathing difficulties, and inflammatory diseases including ulcerative colitis.
The company plans on using $80m of the proceeds for the clinical development of its cystic fibrosis treatment through to the completion of a Phase 2 trial, and $65m to support a Phase 2 trial for the treatment of inflammatory bowel disease.
Morgan Stanley, Credit Suisse, and Cowen and Company are serving as joint book-running managers for the offering. Nomura and Bryan, Garnier and Company are acting as co-managers.