Solid Biosciences, a US-based Duchenne muscular dystrophy (DMD) therapy developer backed by neurological disease drug producer Biogen, has raised almost $125m in its initial public offering.
The company issued approximately 7.81 million shares on the Nasdaq Global Select Market priced at $16.00 each, below the IPO range of $18 to $19, though the number of shares in the offering was increased from 7 million.
Solid Bio is working on a treatment for DMD, a genetic muscle-wasting disease that generally affects young boys. The IPO proceeds will support research and development costs for its lead drug candidate, a gene transfer therapy known as SGT-001.
SGT-001 entered phase I/II clinical trials in late 2017, but the IPO share price was cut after the company disclosed on Thursday that there is a partial hold on a clinical trial for SGT-001.
The company’s shares opened at $25.50 on Friday and closed at $22.62 on its first day of trading. It had a market capitalisation of $531m when it floated, according to Nasdaq.
Biogen co-led a $42.5m series B round for Solid Bio subsidiary Solid GT with Perceptive Advisors in late 2016, investing together with Janus Capital Management before Solid GT and Solid Bio merged.
Solid Bio raised $35.8m in round featuring Biogen, Perceptive, Janus Capital, RA Capital Management, Bain Capital Life Sciences, RTW Investments, Foresite Capital, Cormorant Asset Management and entities affiliated with Leerink Partners that closed in October 2017.
Biogen’s New Ventures unit owned a 6.7% stake in Solid Bio prior to the offering. Other notable shareholders are Janus Capital (11.4% pre-IPO), Perceptive’s Life Sciences Master Fund (11%), Bain Capital Life Sciences and RA Capital (6.4% each).
JP Morgan, Goldman Sachs and Leerink Partners are joint book-running managers for the IPO while Nomura and Chardan are co-managers.