Valeritas, a US-based diabetes treatment developer backed by healthcare consortium Kaiser Permanente, set the range for its initial public offering between $14 and $16 a share yesterday.
The company plans to issue 5 million shares, and will raise $80m if it floats at the top of its range. Should it float at the middle of its range, Valeritas will be valued at $241m.
Founded in 2006, Valeritas’ lead product is V-Go, a small, disposable insulin delivery device to be used every 24 hours.
About $54m of the proceeds from the IPO are set to be spent on sales and marketing for V-Go, while a further $14m will go to research, development, engineering and the upgrading of the company’s manufacturing capabilities.
Valeritas has raised about $239m in equity and $109m in debt, according to regulatory filings, including $150m from a 2011 series C round featuring Kaiser Permanente Ventures, a subsidiary of Kaiser Permanente, MPM Capital, Pitango Venture Capital, Abingworth, Advanced Technology Ventures, Onset Ventures, HLM Venture Partners, Agate Medical Investments and CHL Medical Partners.
A holding company made up of various investors including Welsh, Carson, Anderson & Stowe and MPM own 64.2% of Valeritas, while Welsh, Carson, Anderson, & Stowe owns an 11.7% stake itself and Pitango a 6.3% share.
Welsh, Carson, Anderson & Stowe, Pitango, MPM and Onset have expressed an interest in buying up $20m worth of shares in the offering, but have not specified individual amounts.
Piper Jaffray and Leerink Partners are the joint bookrunners for the offering, while Oppenheimer & Co is also serving as an underwriter.