US-based rare disease drug developer Fulcrum Therapeutics has filed to raise up to $86.3m in an initial public offering that would enable pharmaceutical companies GlaxoSmithKline, Sanofi and WuXi AppTec to exit.
Fulcrum is working on treatments for rare genetically-defined diseases, and the IPO proceeds will fund a phase 2b clinical trial for its lead candidate, a facioscapulohumeral muscular dystrophy therapy called Losmapimod it licensed from pharmaceutical firm GlaxoSmithKline.
The cash will also support the development of drug treatments for haemoglobinopathies – blood related diseases or disorders – such as sickle cell disease, in addition to more generalised drug discovery activities.
The company has raised $140m in funding in total, $55m of which was supplied by venture capital firm and founding investor Third Rock Ventures in 2016. The series A round was topped up by $5m from GV, a subsidiary of internet and technology group Alphabet, in mid-2017.
Fulcrum subsequently closed an $80m series B round in September 2018 featuring Sanofi subsidiary Sanofi Ventures and 6 Dimensions Capital, which was co-founded by WuXi AppTec and VC firm Frontline BioVentures.
The series B was led by a $21m investment by healthcare investment firm Foresite Capital and included financial services and investment group Fidelity, Casdin Capital, Section 32, NS Investments and entities affiliated with Leerink Partners.
GlaxoSmithKline owns a 9.5% stake in Fulcrum having formally sealed the licencing deal in April this year. Third Point holds 43.2% of its shares and Foresite Capital 8%.
Morgan Stanley, BofA Securities and SVB Leerink have been appointed underwriters for the offering, which is slated to take place on the Nasdaq Global Market.
