Magenta Therapeutics, a bone marrow transplant technology developer backed by corporates Alphabet, Partners Healthcare and Access Industries, has raised $100m in its initial public offering.
The company issued almost 6.7 million shares on the Nasdaq Global Market priced at $15.00 each, in the middle of the $14 to $16 range it set earlier this month. Its shares opened at $15.92 on its first day of trading on Thursday and closed at $14.50 on Friday.
Magenta is working on treatments for blood cancers, autoimmune and genetic diseases based on bone marrow transplants that use gene-modified stem cells. It will put $39m of the IPO proceeds into further development of its lead conditioning program.
A further $14m will support development of Magenta’s lead product candidate, MGTA-456, a gene therapy treatment for blood cancers that is currently in a phase 2 clinical trial for patients with inherited metabolic diseases. Magenta will invest $9m in another program, MGTA-145.
The company had raised approximately $150m in equity funding, $48.5m coming in a 2016 series A round featuring Access Industries as well as GV and Partners Innovation Fund, respective subsidiaries of internet technology conglomerate Alphabet and care provider Partners Healthcare.
Third Rock Venture and Atlas Venture co-led the 2016 round, and all the series A backers returned for a $50m series B in April 2017 that included featured cellular technology services provider Be The Match BioTherapies and Casdin Capital. GV led that round with a $33m investment.
Casdin Capital led Magenta’s $52m series C round in April 2018, investing alongside Be the Match BioTherapies, Eventide Asset Management, EcoR1 Capital and Watermill Asset Management.
Magenta’s largest shareholder is Third Rock, whose 28.9% stake was diluted to 23.3% in the IPO. Atlas Venture came out with a 14.1% share, GV 9.7% and Casdin Capital 4.6%.
JP Morgan, Goldman Sachs and Cowen and Company are the joint book running managers for the IPO while Wedbush PacGrow is lead manager. They have a 30-day option to buy another 1 million shares, boosting the IPO to $115m.