Biopharmaceutical company Regeneron Pharmaceuticals has agreed to invest $75m in the next funding round raised by Intellia Therapeutics, a US-based gene editing technology developer that has filed for a $120m initial public offering.
Intellia is working on drugs based on the Crispr/Cas9 gene editing system, which can cut DNA in specific locations, making it possible to remove, repair or insert specific genetic sequences.
Regeneron pledged the equity funding as part of a licensing and collaboration agreement to advance Crispr/Cas gene-editing technology for use in vivo therapeutic development.
The companies plan to develop a Crispr/Cas platform while also working together to discover, develop and commercialise new drug therapies using the technology.
Regeneron is making a $75m upfront payment to Intellia, with the equity funding to follow alongside “significant” milestone and royalty payments for potential Regeneron products.
Intellia filed for an IPO on the same day as the Regeneron partnership was announced. It plans to use the proceeds to advance one of the four in vivo liver programs it is developing to the point where it can submit an investigational new drug (IND) application, while also developing additional candidates.
The company has so far raised $85m across two funding rounds, initially securing $15m in a series A round co-led by pharmaceutical firm Novartis and venture capital firm Atlas Venture when it was launched by biotech company Caribou Therapeutics in November 2014.
OrbiMed Healthcare Fund Management led a $70m series B round in September 2015 that included Novartis, Atlas Venture, Fidelity Management and Research, Janus Capital Management, Foresite Capital, Sectoral Asset Management, EcoR1 Capital, and undisclosed mutual funds and healthcare investors.
Caribou remains Intellia’s largest shareholder, with a 21.5% stake, ahead of Novartis subsidiary Novartis Institutes for BioMedical Research, which holds 20.3%. Other notable shareholders include Atlas Venture (17%), OrbiMed (9.3%) and Fidelity Management and Research (7.1%).
Credit Suisse Securities (USA), Jefferies, Leerink Partners and Wedbush Securities are serving as underwriters for the offering.