Homology Medicines, a US-based genetic disease drug developer backed by pharmaceutical company Novartis, has filed for a $100m initial public offering on the Nasdaq Global Select Market.
Homology is developing gene therapies intended to treat the underlying causes of rare genetic diseases. Part of the IPO proceeds will be used to take its lead gene therapy candidate, HMI-102, through preclinical studies and a phase 1/2 clinical trial.
The funds raised through the offering will also support the advance of its lead gene editing candidate through preclinical studies, and the expansion of Homology’s manufacturing capabilities and its intellectual property portfolio.
The company has raised almost $130m in venture funding, initially securing $2.5m in convertible note financing in 2015.
Homology added $43.5m in an early 2016 series A round co-led by venture capital firms 5AM Ventures and Arch Venture Partners and backed by Deerfield Management, Temasek and Arch Venture Partners’ Arch Overage Fund.
Investment firm Deerfield led Homology’s $83.5m series B round in August 2017, which included Novartis as well as financial services group Fidelity Management and Research and Alexandria Venture Investments, the VC arm of real estate investment trust Alexandria Real Estate Equities.
Temasek, Arch Venture Partners, 5AM Ventures, HBM Healthcare Investments, Maverick Ventures, Rock Springs Capital, Vida Ventures and Vivo Capital also participated in the series B round.
Novartis Institutes for BioMedical Research owns a 7.3% stake in Homology. The company’s other main shareholders are 5AM Ventures (24.8%), Arch Venture Partners (22.4%), Deerfield (14.7%) and Temasek Life Sciences (9.6%).
Merrill Lynch, Pierce, Fenner & Smith, Cowen and Company, Evercore Group and BTIG are the underwriters for the offering.