Inotek Pharmaceuticals, a US-based biopharmaceutical company developing treatments for glaucoma, has priced its initial public offering at $6 per share, and is set to raise $40m.
Inotek, which included biotechnology company MedImmune among its investors, will issue approximately 6.6 million shares, and will trade on Nasdaq. It is concurrently issuing $20m of convertible senior notes with an annual interest rate of 5% that are due to mature in February 2020.
The size of the offering is smaller than the $132m Inotek trageted when it first filed for the IPO in November 2014. Inotek had aimed to gain $86m through the offering and a further $46m through convertible debt.
The company plans on using the proceeds to enter its lead drug candidate, Trabodenoson, into a Phase 3 clinical trial.
Inotek has raised more than $190m in equity and debt since it was founded. MedImmune holds a 16% stake in the company that will be diluted to 9.3% post-IPO.
Other major shareholders in Inotek include Devon Park Bioventures, which will hold a 15% stake post-offering, Rho Ventures (11.8%), Care Capital (10.4%) and Pitango Venture Capital (6.7%).
Cowen and Company, Piper Jaffray and Nomura Securities International are serving as joint book-running managers for the offering, while Canaccord Genuity is acting as co-manager.
The underwriters have a 30-day option to purchase an additional 1 million shares and an additional $3m in convertible notes, which could eventually boost the size of the IPO and convertible notes offering to $69m.