Rhythm Pharmaceuticals, a US-based peptide therapeutics developer backed by pharmaceutical firms Pfizer and Ipsen, filed for a $115m initial public offering on Nasdaq on Tuesday.
Founded in 2008, Rhythm is working on treatments for rare genetic disorders such as pro-opiomelanocortin (POMC) deficiency obesity and Prader-Willi syndrome, which cause patients to have insatiable hunger and lead to massive gain weights from an early age.
The company has raised $114m in funding, most recently securing $41m in a February 2017 round backed by Pfizer’s corporate venturing unit Pfizer Venture Investments and Ipsen, as well as Deerfield Management, OrbiMed, MPM Capital, New Enterprise Associates (NEA), Third Rock Ventures and an unnamed public healthcare investment fund.
Pfizer Venture Investments and Ipsen also contributed to a $33m series B round raised over two tranches and closed in late 2012, alongside MPM Capital, NEA and Third Rock.
In 2010, MPM led a $40m series A round, with participation from NEA and Third Rock. The cash went to Rhythm Metabolic, then a subsidiary of Rhythm Pharmaceuticals, but the company underwent a restructuring effort in 2013 that ultimately resulted in the single entity today.
Rhythm will use the proceeds to develop its lead drug candidate, setmelanotide, through a phase 3 clinical trial for POMC and through enrolment for a phase 3 study for Leptin receptor deficiency obesity.
The money will also support a proof of concept phase 2 clinical trial for setmelanotide in a host of other conditions, including Bardet-Biedl syndrome, Alström syndrome, POMC heterozygous deficiency obesity and POMC epigenetic disorders.
Finally, the company also aims to use the proceeds to prepare for commercialisation of the treatment.
NEA is currently the largest shareholder with a 20.77% stake, followed by Third Rock with 18.96%. MPM owns 12.36%, while OrbiMed retains 12.13%.
Pfizer owns 6.61% and Baker Brothers Life Sciences holds 5.54%. Ipsen is not listed as a stockholder of more than 5%.
Morgan Stanley, Merrill Lynch, Pierce, Fenner & Smith and Cowen and Company are acting as representatives of the underwriters, which also include Needham & Company.