Merus, a Netherlands-based cancer treatment developer backed by pharmaceutical firms Novartis, Novo, Pfizer and Johnson & Johnson, has filed for a $60m initial public offering on Nasdaq.
Founded in 2003, Merus is working on antibodies which are able to simultaneously prevent cancer cells from growing and activate the body’s own immune system to target the tumours.
The proceeds from the IPO will support completion of a phase 1/2 clinical trial for a treatment for solid tumours. Additional capital will go towards a clinical trial application and phase 1/2 trial of a therapy for acute myeloid leukaemia.
Novartis currently holds a 13.7% stake in Merus, while Johnson & Johnson holds 10.6%, Pfizer retains 9.1% and Novo has a 7.8% stake.
Other major shareholders include Bay City Capital (13.7%), Aglaia Oncology Fund (11%), Sofinnova (8.2%), Baker Brothers Life Sciences (7.2%) and LSP (6.8%).
The company was originally reported in April 2015 to be lining up a €100m ($105m) IPO, but instead opted to raise the first tranche of an $83m series C round in August that was co-led by Novo and venture capital firm Sofinnova Ventures.
Novartis Venture Fund, Johnson & Johnson Innovation and Pfizer Venture Investments, the respective investment vehicles of Novartis, Johnson & Johnson and Pfizer, also invested in the series C round.
The corporate investors were joined by RA Capital Healthcare Fund, Rock Springs Capital, Tekla Capital Management, Bay City Capital, LSP Life Sciences Partners, Aglaia Oncology Fund and one unnamed life sciences-focused backer.
Novartis Option Fund, Pfizer, Bay City Capital, Life Sciences Partners and Aglaia Oncology provided a $30.7m first tranche for Merus’ series B round in 2010.
The series B round was closed in 2013 at $72.7m following a $42m extension from Johnson & Johnson Development Corporation, Novartis Venture Fund, Pfizer Venture Investments, Bay City, LSP and Aglaia. Aglaia Oncology provided an undisclosed amount of series A capital in 2006.
Citigroup Global Markets and Jefferies are acting as joint book-running managers for the offering. Guggenheim Securities and Wedbush Securities are also serving as underwriters.