Morphic Therapeutic, a US-based biotechnology developer backed by corporates AbbVie, GlaxoSmithKline, Novo, Pfizer, Schrödinger and ShangPharma, has filed for an $86.3m initial public offering.
Founded in 2015, Morphic is working on small-molecule drugs aimed at integrins: protein receptors that control a wide range of cellular processes. The approach has applications in fibrosis, vascular disorders, autoimmune diseases and immuno-oncology.
The company is commercialising research by Timothy Springer, professor of biological chemistry and molecular pharmacology and a professor of medicine at Harvard University’s Medical School and Boston Children’s Hospital.
The company has entered into a strategic collaboration agreement with chemical simulation software producer Schrödinger to advance the design of drug candidates, and signed agreements with pharmaceutical companies AbbVie and Janssen to develop assets.
Morphic closed an $80m series B round in September 2018 that was co-led by pharmaceutical firm Novo Holdings and investment firm Omega Funds, with contributions from Invus and EcoR1 Capital.
AbbVie Ventures, SR One and Pfizer Ventures, respective corporate venturing subsidiaries of pharmaceutical firms AbbVie, GlaxoSmithKline and Pfizer, were also revealed as series B investors in Morphic’s IPO filing.
The additional, previously undisclosed participants in the series B round additionally included Timothy Springer and investment firms Artal International and Polaris Partners.
Morphic raised $51.5m in a 2016 series A round co-led by SR One and Pfizer Ventures and backed by AbbVie Ventures, Schrödinger and ShangPharma Investment Group, the investment arm of pharmaceutical holding firm ShangPharma.
Omega, Polaris Partners and Springer also contributed to the series A round, which followed $3m in seed funding from Schrödinger, Polaris Partners, Springer, board member Gustav Christensen, and president and chief executive Praveen Tipirneni earlier the same year.
The IPO proceeds will fund further development of a4b7, Morphic’s treatment for inflammatory bowel disease, as well as MORF-720, a therapy for idiopathic pulmonary fibrosis, and the company’s drug discovery platform, Mint.
Springer is currently Morphic’s largest shareholder, owning a 21.9% stake, while SR One holds 9.8%, Pfizer 9.3% and Novo 8.4%. Its other notable investors are Omega Funds (12%), Polaris Partners (9.3%), EcoR1 and Artal International (5.6% each).
Jefferies, Cowen, BMO Capital Markets and Wells Fargo Securities are the joint bookrunning managers for the proposed offering, which is slated to take place on the Nasdaq Global Market.
