US-based central nervous system (CNS) disorder-focused drug developer Impel NeuroPharma floated on Friday in an $80m initial public offering representing an exit for manufacturing group 3M.
The offering consisted of just over 5.3 million shares priced at $15.00 each, in the middle of the IPO’s $14 to $16 range, and they closed trading at the same price, giving the company a market capitalisation of about $290m.
Impel is working on therapeutics for diseases with high unmet medical needs and is initially concentrating on CNS, a class of diseases for which it believes the upper nasal cavity could be a promising entry point for medicines.
The company intends to put $60m of the IPO proceeds into completing regulatory approval for TRUDHESATM (INP104), an acute treatment it is developing for migraine, in addition to its commercial launch.
Another $10m will go to a clinical proof-of-concept trial for INP105, a drug candidate intended to treat agitation and aggression in patients with autism spectrum disorder.
The offering comes after approximately $124m in funding for Impel, including $12m in a series B round in 2015 that included 3M subsidiary 3M New Ventures. VenBio, 5am Ventures and Vivo Capital added $21m in 2016 through a series C round that closed at $36m in February 2018.
Impel then raised $67.5m in a December 2018 series D round co-led by KKR and Norwest Venture Partners that also featured Vivo Capital, 5AM Ventures and VenBio Partners.
3M is not among the company’s largest shareholders. KKR has a 13.3% stake diluted from 19.3% while 5AM Ventures, VenBio Partners and Vivo Capital each own 11.4% and Norwest 11.1%.
Joint bookrunning managers Cowen and Guggenheim Securities and lead manager Wedbush PacGrow have a 30-day option to acquire another 800,000 shares, potentially boosting the size of the IPO to $92m.
