Passage Bio, a US-based genetic medicine developer that counts pharmaceutical firm Eli Lilly and conglomerate Access Industries as investors, has closed its initial public offering at more than $248m.
The company floated at the end of last month, raised an initial $216m from 12 million shares issued on the Nasdaq Select Global Market and priced at $18.00 each. The underwriters have purchased 1.8 million additional shares to add $32.4m.
Founded in 2017, Passage Bio is working on genetic therapies for rare, life-threatening disorders affecting the central nervous system. It has a research, collaboration and licensing agreement with University of Pennsylvania’s Orphan Disease Center and Gene Therapy Program.
The proceeds will fund planned phase 1/2 trials for three assets which are aimed at frontotemporal dementia, lysosomal storage condition Krabbe disease and genetically inherited brain and spinal cord disorder GM1 gangliosidosis respectively.
The company will also look to advance its pipeline and choose additional drug candidates to move into the clinical phase. It had collected $226m in funding pre-IPO.
Healthcare investment firm OrbiMed led Passage Bio’s $116m series A round in February 2019, investing with Eli Lilly subsidiary Lilly Asia Ventures, Vivo Capital, Frazier Healthcare Partners, Versant Ventures and New Leaf Venture Partners.
The series A investors returned for a $110m series B round in September alongside Access Industries’ Access Biotechnology unit, Highline Capital Management, Boxer Capital, Logos Capital and Sphera Funds Management.
Lilly Asia Ventures and Access Biotechnology held 7.6% and 6.5% stakes pre-IPO that had been diluted to 5.5% and 4.7% respectively, prior to the additional share purchases.
OrbiMed remains Passage Bio’s largest shareholder and held a 14.2% stake post-IPO, followed by Versant Ventures (10.8%), Frazier Life Sciences (10.1%), New Leaf, Vivo Ventures and co-founder James Wilson (5.1% each).
JP Morgan Securities, Goldman Sachs and Cowen and Company were joint book-running managers for the IPO and Chardan was lead manager.
The original version of this story appeared on our sister site, Global University Venturing.