Phathom Pharmaceuticals, a US-based company that has licensed a gastrointestinal disease medicine from pharmaceutical firm and investor Takeda, formally closed its initial public offering at $209m yesterday.
The company issued approximately 9.56 million shares on the Nasdaq Global Select Market on Friday priced at $19.00 each. Its shares closed at $23.59 on Monday, leading the underwriters to take up the over-allotment option and buy another 1.43 million shares.
Founded in 2018, Phathom has licensed the US, Canadian and European rights to Vonoprazan, a small molecule treatment for gastrointestinal disease Takeda has marketed in its home country of Japan since 2014. The IPO proceeds will fund US clinical trials for the drug.
The offering follows $90m from Frazier Healthcare Partners, Abingworth, Janus Henderson Investors, Medicxi, RA Capital Management, Richard King Mellon Foundation, Sahsen Ventures, BVF Partners, Greenspring Associates and unnamed private investors, and $50m in debt financing from Silicon Valley Bank, in May 2019.
Takeda received almost 7.6 million shares in connection with the offering through terms agreed in the licensing agreement and had a 24.7% stake prior to the additional shares being bought. Frazier Healthcare owned a 22.6% stake.
Goldman Sachs, Jefferies and Evercore ISI were joint book-running managers for the IPO while Needham & Company was lead manager. Phathom’s shares closed at $23.32 yesterday.
