SCPharmaceuticals, a US-based subcutaneous drug developer backed by pharmaceutical companies Sun Pharmaceutical Industries and Lundbeck, has raised $89.6m in an initial public offering.
The offering consisted of 6.4 million shares issued on the Nasdaq Global Select Market priced at $14.00 each, on the lower end of its $14 to $16 range. The company floated on Friday and the shares were at $14.15 at close of trading yesterday, giving it a market cap of about $249m.
SCPharmaceuticals is developing subcutaneously-administered drugs that will be used to treat conditions such as heart failure in more affordable environments than traditional hospitals.
The company plans to invest up to $42m of the proceeds in the pre-commercial planning and commercialisation of its lead product, Furoscix, which will address heart failure though the subcutaneous delivery of furosemide through its internally-developed SC2Wear Infusor device.
Up to $8m will fund the infrastructure work necessary to expand manufacturing capacity for the SC2Wear Infusor, while between $10m and $25m will go to research and development for SCPharmaceuticals’ infectious diseases program.
The IPO follows approximately $77m of funding, according to press releases and securities filings, including $47m in a December 2016 round featuring Lundbeck’s strategic investment arm, Lundbeckfond Ventures, and Sun Pharmaceutical as well as 5AM Ventures and OrbiMed.
Lundbeckfond Ventures and 5AM Ventures co-led a $17.6m series A round for SCPharmacueticals in 2014, and both also participated in an $8m convertible note round in January 2016 and a $4.7m round seven months later.
Lundbeck held a 22.6% stake in the company through its Lundbeckfond Invest unit that was diluted to 14.4% in the offering, while Sun Pharmaceutical’s was cut from 16.2% to 10.3%.
SCPharmacueticals’ largest shareholder is 5AM Ventures, with a 14.8% stake post-IPO. Other notable investors are OrbiMed (14.6%) and company founder Pieter Muntendam (5.2%).
Jefferies, Leerink Partners and BMO Capital Markets are joint book-running managers for the IPO. They have a 30-say option to buy another 960,000 shares, boosting the size of the offering to $103m.
– Photo courtesy of scPharmaceuticals, Inc.