Grail, a US-based medical diagnostics technology developer that has raised more than $1.9bn in funding from investors including a range of corporates, filed for a $100m initial public offering yesterday.
Morgan Stanley, Goldman Sachs and BofA Securities are lead bookrunners for the IPO while Cowen and Evercore ISI are also bookrunners. The $100m represents a placeholder figure and the offering is set to take place on the Nasdaq Global Select Market.
Founded in 2015 by genomics technology producer Illumina, Grail is combining computer and data science with gene sequencing technology and population-level clinical studies to develop a screening system capable of detecting cancer earlier.
The company’s blood test has shown the ability to detect more than 50 types of cancer in clinical testing. It plans to launch a cancer test called Galleri for patients aged over 50 in 2021, with a diagnostic aid for cancer test slated to be released later the same year.
The IPO proceeds will fund commercialisation of both products in addition to more clinical studies, product development and the growth of Grail’s sales team and laboratory facilities together with preparations for the expansion of its commercial operations.
Illumina led the company’s last round, a $390m series D closed in May this year, investing with Public Sector Pension Investment Board, Canada Pension Plan Investment Board and, according to the IPO filing, Milky Way Investments Group.
Grail received $300m in a mid-2018 series C round co-led by 6 Dimensions Capital, an investment firm co-founded by pharmaceutical group WuXi AppTec, with Ally Bridge and Hillhouse Capital.
WuXi AppTec subsidiary WuXi NextCode also participated in the round, as did Blue Pool Capital, China Merchant Securities International, CRF Investment, HuangPu River Capital, ICBC International and Sequoia Capital China.
The company closed its series B round at $1.2bn the previous year, a round featuring internet group Tencent, e-commerce firm Amazon, medical device maker Varian Medical Systems, care provider Memorial Sloan Kettering Cancer Center and pharmaceutical companies Bristol-Myers Squibb, Celgene and Merck & Co.
Another pharmaceutical producer, Johnson & Johnson, invested through its Johnson & Johnson UK Treasury subsidiary, while pharmaceuticals supplier McKesson took part through McKesson Ventures. The round’s $900m first tranche was led by Arch Venture Partners.
In 2016, Illumina and Arch Venture Partners co-led the $100m first tranche of Grail’s series A round, which closed at $125m with backing from Sutter Hill Ventures, Bezos Expeditions and Bill Gates. Its investors include GV, a subsidiary of internet technology group Alphabet, and Decheng Capital.
Illumina remains Grail’s largest shareholder, with a 14.6% stake. Arch Venture Partners owns 9.5% while Johnson & Johnson UK Treasury, which has invested a total of $114m in the company according to the IPO filing, holds 7.6%.
