Satsuma Pharmaceuticals, a US-based migraine therapy developer backed by research services provider Shin Nippon Biomedical Laboratories, raised $82.5m in its initial public offering on Friday.
The company issued 5.5 million shares on the Nasdaq Global Market priced at $15.50 each, above the IPO’s $14 to $15 range. They reached a peak of $19.90 before closing at $16.90, giving Satsuma a market cap of about $280m.
Spun off from Shin Nippon in 2016, Satsuma is working on an acute migraine treatment, STS101, that consists of a dry-powder formulation of a chemical compound called dihydroergotamine mesylate administered through a nasal spray.
Proceeds from the initial public offering have been allocated to phase 3 clinical trials and manufacturing activities for STS101.
Satsuma had secured $74m in equity financing ahead of its flotation. RA Capital Management and TPG Biotech, a life sciences arm of private equity group TPG, co-led its $12m series A round in early 2017.
Wellington Management Company led a $62m series B round for the company in April 2019 that included Shin Nippon and SBI Investment, a subsidiary of financial services firm SBI.
RA Capital Management, TPG Biotech, Osage University Partners, Caxton Alternative Management vehicle Cam Capital, Surveyor Capital, Eventide Asset Management, Cormorant Asset Management and Lumira Ventures filled out the round.
All shareholders owning more than 5% ahead of the offering purchased additional stock as part of the IPO. Shin Nippon bought about $3.6m of shares and emerged with a 9.4% stake while Wellington Management invested $15.5m to increase its stake from 10% to 14.5%.
Satsuma’s other notable shareholders are RA Capital (28.2% post-IPO), TPG Biotech (11.4%), investment bank Citadel (6.4%), Eventide (5.9%), Cam Capital (5.3%) and Cormorant (5.2%).
Credit Suisse Securities (USA), SVB Leerink and Evercore Group are the joint book-running managers for the offering. They have been granted a 30-day option to purchase up to 825,000 additional shares, which would lift the size of the IPO to approximately $95.3m.
The original version of this article appeared on our sister site, Global University Venturing.
