US-based regenerative medicine developer Histogenics has raised $65m from an initial public offering on Nasdaq, issuing 5.9 million shares priced at $11 each, below its $13-15 range.
Histogenics will use the proceeds to advance its lead product candidate, NeoCart, to Phase 3 clinical trials, to fund its partnership with life sciences company Intrexon around a synthetic biology technology platform and to increase its manufacturing capabilities for NeoCart.
Intrexon, which already held $10m of convertible promissory notes ahead of the flotation, purchased an additional 1.7 million shares for $19.5m and now holds a 7.2% stake.
Sofinnova Venture Partners, Split Rock Partners and Wilmslow Estates equally agreed to purchase a combined 1.3 million shares of common stock, totalling $15m.
Wilmslow Estates is Histogenics largest shareholder, owning 11.9%, down from 26.9% pre-IPO. Sofinnova’s stake was cut from 27% to 12.4% and Split Rock’s from 18% to 8.2%. Altima Restructure Fund holds a 3% stake post-IPO and Boston Millennia Partners 2.6%.
Histogenics had raised $89.3m in debt and equity funding befpre the flotation, most recently closing a 2012 series C round that raised $49m from backers including BioMed Ventures, the venture capital arm of life sciences realty company Biomed Realty, and BASF-backed venture capital fund Fintech Gimv.
Underwriters Cowen and Company, Needham & Company, Canaccord Genuity and BTIG have the option to purchase almost 890,000 additional shares within a 30-day period, which would increase the size of the IPO to approximately $74.8m.
Histogenics began trading on Nasdaq on Wednesday last week and it has a market cap of $140.3m as of the time of writing. Shares have been stable within a narrow range of $10.75 and $11.12.