AAA Sienna colours in $65m IPO

Sienna colours in $65m IPO

Sienna Biopharmaceuticals, a US-based dermatology product developer backed by pharmaceutical group Johnson & Johnson, has raised $65m in its initial public offering.

The company issued just over 4.33 million shares priced at $15.00 each, the mid-point of the IPO’s $14 to $16 range.

Sienna is developing topical medical dermatology and aesthetics products, and will spend $27m of the proceeds on advancing its lead product candidate, SNA-120, through phase 2b clinical trials. SNA-120 is a treatment for pruritus, an itch related to the skin condition psoriasis, and for psoriasis itself.

Another $20m will support pivotal clinical trials for a silver particle acne treatment called SNA-001, while $7m be will be used for preclinical and clinical studies for a candidate known as SNA-125 in atopic dermatitis and psoriasis.

Sienna was part of one of Johnson & Johnson’s JLabs incubators in 2013, but the only shareholders with stakes greater than 5% post-IPO are Arch Venture Partners (18.3%), Partner Fund Management (7.4%) and financial services group Fidelity Research and Management (5.1%).

Sienna has raised $86m in funding, and Arch Venture Partners and Venvest Capital co-led its last round, a $40m series B in April 2017. Its other investors include investment firm BioBrit.

The company’s shares opened at $19.00 on Thursday and eventually closed at $19.54 on Friday after its second day of trading.

JP Morgan and Cowen are joint book-running managers for the IPO, while BMO Capital Markets is bookrunner. They have the 30-day option to buy another 650,000 shares, which would increase the size of the offering to approximately $74.8m.

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