Austria-based biopharmaceutical company Nabriva Therapeutics, backed by pharmaceutical firm Novartis, has priced its initial public offering at $92.3m, selling nine million American Depositary Shares (ADS) at $10.25.
The ADS represent a total of 900,000 common shares. The company floated on Nasdaq on Friday, when the depositary shares increased to $13.24.
Established in 2006, Nabriva is working on anti-infective antibiotics targeting serious infections. Lefamulin, the company’s lead drug candidate, targets pneumonia.
The proceeds will support clinical development of lefamulin for community-acquired bacterial pneumonia as well as early-stage research exploring the application of lefamulin for other kinds of the condition.
The company will also use $4.9m to repay a loan to Kreos Capital by July 2017.
Novartis Venture Fund, the corporate venturing subsidiary of Novartis, backed a $120m series B round for Nabriva in April 2015. Vivo Capital, OrbiMed, EcoR1 Capital, Boxer Capital, HBM Partners, Phase4 Partners, Wellcome Trust and Global Life Sciences Ventures (GLSV) also participated in the round.
In 2012, healthcare company Forest Laboratories injected $25m as part of a collaboration agreement that also gave Forest a one year exclusive right to acquire Nabriva. Novartis Venture Fund, GLSV, Phase4, Wellcome Trust, and HBM provided a €42 ($47.5m) series A round in 2006.
Novartis’ share has been diluted from 5.3% to 2.9% following the flotation.
HBM and Vivo are Nabriva’s largest external shareholders with an 18% stake each, diluted to 9.8% post-offering. OrbiMed’s 16.2% stake has been diluted to 8.9%, Phase4’s 14.3% to 7.8%, Wellcome Trust’s 11% to 6% and Omega Funds’ 8.3% to 4.5%.
Leerink Partners and RBC Capital Markets served as joint book-running managers. Needham & Company and Wedbush PacGrow acted as co-managers. The underwriters have a 30 day option to acquire up to 1.35 million additional ADS.