Spark Therapeutics, a genetic disease treatment developer backed by Children’s Hospital of Philadelphia, priced a $161m initial public offering on Friday and is issuing 7 million shares priced at $23.00 each.
Spark’s lead product candidate is a treatment for retinal dystrophies, conditions that can end up blinding their victims.
The company will use $12m of the IPO proceeds to support a Phase 3 clinical trial for the drug, while additional cash will go to research on treatments for another retinal disease, choroideremia, and haemophilia.
Children’s Hospital of Philadelphia, which holds its shares through the CHOP Foundation, will remain Spark’s largest shareholder, though its stake will be diluted from 53.4% to 37.5%. Spark spun-out of research conducted at the hospital, which invested $50m in the company, in 2013.
Sofinnova Venture Partners’ stake has been cut from 11.5% to 8.1%, and the stake held by Baker Bros from 7.7% to 5.4%.
J.P. Morgan Securities and Credit Suisse Securities are serving as lead book-running managers for the IPO, while Cowen and Company is lead manager and Sanford C. Bernstein co-manager.
Spark will float above its $19 to $21 range. The underwriters have the option to buy another 1.05 million shares, which would boost the IPO to approximately $185.2m.