MyoKardia, a US-based developer of treatments for cardiovascular disease backed by pharmaceutical firm Sanofi, will raise $54.4m in its initial public offering when it floats on Nasdaq today.
The company priced almost 5.44 million shares at $10 each, considerably less than its $86m target when it initially filed for the IPO last month, as well as the $15 to $17 range set last week, when it planned to issue almost 4.7 million shares.
Sanofi’s involvement is also set to be lessened. The company, a strategic partner of MyoKardia, had expressed interest in buying $25m of shares in the offering through its Aventis subsidiary, but will instead invest $9m.
MyoKardia is developing targeted therapies for serious and neglected rare cardiovascular diseases. The company plans to use the IPO proceeds plus cash in hand to advance its lead candidate MYK-461 through phase 2 clinical trials, with additional cash to go to its preclinical, discovery and research programmes.
Aventis will increase its share of MyoKardia from 11.2% to 12.3% through the offering. The stake held by MyoKardia’s largest shareholder, Third Rock Ventures, will be diluted from 52.3% to 41.5% while Fidelity’s share will drop from 13.1% to 10.4%.
MyoKardia raised $38m in series A funding from Third Rock before closing a $46m series B round in May 2015 featuring Sanofi, Casdin Capital, Cormorant Asset Management, Perceptive Life Sciences, BridgeBio, a Cowen Group affiliate and an undisclosed public investment fund.
Sanofi had provided a further $10m in equity funding as part of a collaboration deal signed in September 2014.
Credit Suisse Securities and Cowen and Company are lead book-running managers for the IPO. Wells Fargo Securities is serving as book-running manager and Wedbush PacGrow as co-manager.
The IPO’s underwriters have the 30-day option to buy more than 815,000 additional shares, which would lift the size of the offering to more than $62.5m.