US-based musculoskeletal disease treatment developer Edgewise Therapeutics has filed to raise $100m in an initial public offering on the Nasdaq Global Market that will enable pharmaceutical firm Novo to exit.
Edgewise is developing small molecule drug therapies to treat severe musculoskeletal diseases. Its lead drug candidate, EDG-5506, is aimed at addressing Becker muscular dystrophy and Duchenne muscular dystrophy, two conditions that cause muscle degeneration and weakness.
The proceeds of the IPO will go towards the development of EDG-5506 and the company’s other research-stage programmes. JP Morgan, Goldman Sachs and SVB Leerink will serve as underwriters for the offering, and the filing follows at least $145m of funding raised by Edgewise since it was founded in 2017.
The company received $95m in a December 2020 series C round led by hedge fund manager Viking Global Investors that included Novo, Janus Henderson Investors, Surveyor Capital, RA Capital Management, Cormorant Asset Management, Logos Capital and Wellington Management.
The series C round was also backed by existing investors OrbiMed, US Venture Partners (USVP), Deerfield Management, New Leaf Ventures and CureDuchenne Ventures.
Novo and USVP had co-led a $50m series B round for Edgewise in September 2019, investing together with New Leaf Venture Partners, OrbiMed, CureDuchenne Ventures and Deerfield Management.
Novo owns a 13.6% stake in the company while OrbiMed holds 34.6% of its shares, USVP 9.5%, Deerfield’s Private Design Fund IV 9% and Viking Global Opportunities Illiquid Investments Sub-Master, an opportunities investment vehicle managed by Viking Global, 7.5%.