Forma Therapeutics, a US-based cancer and haematologic disease therapy developer backed by pharmaceutical firms Novartis and Eli Lilly, completed a $319m initial public offering yesterday.
The company went public last Friday, expanding the size of the IPO from 11.8 million to 13.9 million shares and pricing them above the range at $20 each. Its shares closed at $39.95 on Monday and $41.20 last night.
Joint book-running managers Jefferies, SVB Leerink and Credit Suisse have taken up the over-allotment option and purchased another 2.09 million shares in Forma.
Founded in 2007, Forma intends to channel at least $115m of the IPO proceeds into a phase 1 clinical trial for lead drug candidate FT-4202 in sickle cell disease, and $15m into a phase1 trial for another candidate, FT-7051, in prostate cancer.
The offering was preceded by about $144m from investors including Eli Lilly subsidiary Lilly Ventures, Novartis’s Option Fund and Venture Fund, and biopharmaceutical company Cubist Pharmaceuticals.
Biomedical Sciences Investment Fund, RA Capital Management, Cormorant Asset Management, Wellington Management, Samsara BioCapital and funds managed by Janus Henderson Investors are also investors.
Novartis Bioventures holds a 7.3% stake in Forma now the IPO has closed while Lilly Ventures owns 5.9%. Its other main investors are RA Capital (12.2%), Baker Brothers Advisors (6.1%), Cormorant (4.6%) and Biomedical Sciences Investment Fund (3.8%).
