Editas Medicine, a US-based genome editing technology developer backed by internet and technology conglomerate Alphabet, has priced what is the first initial public offering in the US in 2016, Reuters reported yesterday.
Editas raised $94.4m after pricing 5.9 million shares at the bottom of the $16 to $18 range it set last week, according to a person familiar with the matter. It is now valued at $571m.
Founded in 2013, Editas is working on a genome editing platform based on Crispr/Cas9 technology that will enable it to create treatments that combat genetically defined diseases by correcting the disease-causing genes in question.
Alphabet invested in a $120m series B round closed by Editas in August 2015 through its Google Ventures unit, joining backers such as Partners Innovation Fund, which acts as not-for-profit healthcare system Partners Healthcare’s venture capital arm.
Bng0, Flagship Ventures, Polaris Partners, Third Rock Ventures, Deerfield Management, Viking Global Investors, Fidelity Management & Research Company, T. Rowe Price, Jennison Associates, Khosla Ventures, EcoR1 Capital, Casdin Capital, Omega Funds, Cowen Private Investments and Alexandria Venture Investments also took part in the series B.
Flagship Ventures, Polaris Partners, Third Rock and Partners Innovation Fund had already supplied $43m to Editas in 2013.
Alphabet and Partners Innovation both hold stakes in Editas sized at less than 5%. Its largest shareholders are Flagship, which will hold a 13.9% share of the company post-IPO, Polaris and Third Rock (13% each).
The IPO proceeds will be spent on advancing Editas’ lead program through preclinical studies and clinical trials, helping to fund preclinical studies for its collaboration with Juno Therapeutics, platform development and preclinical studies of additional research programs.
Underwriters Morgan Stanley, J.P. Morgan Securities, Cowen and Company, and JMP Securities have the 30-day option to buy another 885,000 shares, which would push the IPO up to approximately $108.5m. Editas is expected to float on Nadsaq on Wednesday.