Dice Molecules, the US-based oral therapeutic developer backed by pharmaceutical firm Sanofi and life sciences real estate investment trust Alexandria Real Estate Equities, set terms yesterday for an initial public offering that could raise $170m.
The company plans to list 10 million shares on the Nasdaq Global Market and has set a price range of $15 to $17, potentially giving it a market capitalisation of between $515m and $583m.
Founded in 2014, Dice is focused on the development of orally administered novel therapeutics for the treatment of chronic diseases that affect the immune system, as well as other health conditions. Its lead product candidate, S011806, is a potential treatment for a number of immunological diseases.
The company intends to use approximately $90m of the IPO proceeds to continue the development of S011806 and other pipeline candidates. It will also deploy about $20m for the development of its a4 and aV integrin antagonist programmes.
Dice had raised about $200m of overall funding prior to the announcement of the IPO plans, including $60m in a series C1 round last month that was co-led by RA Capital Management and Sands Capital.
The round drew in additional capital from Osage University Partners (OUP), Janus Henderson Investors, Deep Track Capital, Logos Capital, Northpond Ventures, Eventide Asset Management, Driehaus Capital Management, Soleus Capital, New Leaf Venture Partners and Asymmetry Capital.
RA Capital also led the company’s $80m series C round in January this year. It was backed by Sanofi Ventures and Alexandria Venture Investments, subsidiaries of Sanofi and Alexandria Real Estate Equities respectively.
OUP, Eventide, New Leaf, Soleus Capital, Driehaus Capital Management, Asymmetry Capital, Northpond Ventures, Sands Capital, Altitude Life Science Ventures and Agent Capital also contributed to the series C round.
RA Capital is Dice’s largest shareholder and is set to have its stake reduced from 15.7% to 11.1% through the offering. Its other significant shareholders include Northpond Ventures, set to have an 8.9% stake post-IPO, and Sands Capital, which will retain a 6.8% shareholding.
BofA Securities, SVB Leerink and Evercore ISI have been appointed as underwriters for the offering, which includes a greenshoe option for purchase an additional 1.5 million shares. If exercised, the option could increase the size of the IPO to nearly $196m.