Cortexyme, the US-based degenerative disease drug developer backed by internet technology conglomerate Alphabet and pharmaceutical firms Pfizer and Takeda, formally closed its initial public offering at approximately $86.3m on Monday.
The company secured $75m last week when it issued more than 4.4 million shares priced in the middle of the IPO’s $16 to $18 range, before the underwriters bought more than 660,000 shares. Its shares closed at $23.90 on Monday.
Founded in 2012, Cortexyme is developing treatments for degenerative diseases, including a candidate for Alzheimer’s disease that will target an infectious pathogen in the brains of Alzheimer’s patients. It had raised $92m in funding prior to the offering.
Taking into account the extra shares, Pfizer will own an 11.9% stake but will remain Cortexyme’s largest investor, followed by Pierre and Christine Lamond (10.8%), Takeda’s corporate venturing unit, Takeda Ventures (10%), and Smallcap World Fund (5.9%).
The company’s other investors include Verily, Alphabet’s life sciences subsidiary, as well as Sequoia Capital, Vulcan Capital, Epiq Capital Group, RSL Investments, Huizenga Capital, the Lamond Family, Dolby Family Ventures and Breakout Ventures.
BofA Merrill Lynch and Credit Suisse Securities (USA) were joint book-running managers for the IPO while Canaccord Genuity and JMP Securities were co-managers.
