TScan Therapeutics, a US-based T-cell immunotherapy developer backed by internet and technology group Alphabet and pharmaceutical firms Astellas, Novartis and WuXi AppTec, has filed for an initial public offering (IPO).
The company has set a placeholder figure of $100m and intends to float on the Nasdaq Global Market. Morgan Stanley, Jefferies, Cowen and Barclays Capital are underwriters for the IPO.
Founded in 2018, TScan is developing T-cell therapies to target haematological and solid tumours. Its TargetScan tool analyses cancer patients’ active T-cell receptors to genetically replicate them through its ReceptorScan technology.
The company will use the proceeds of the offering and its cash on hand to execute phase 1/2 clinical trials for three drug candidates and boost its drug discovery pipeline. It will also improve its existing platforms and increase manufacturing capabilities.
TScan’s largest shareholder is entities affiliated with Baker Bros Advisors, which own a 24.7% stake, followed by Novartis BioVentures, a corporate venturing subsidiary of Novartis more commonly known as Novartis Venture Fund (NVF), with 10.4%.
Affiliates of 6 Dimensions Capital, an investment firm co-founded by a subsidiary of WuXi AppTec, own 9% while JMD III Holdings, which is operated by hedge fund manager Hillhouse Capital’s Hillhouse Venture Fund V, holds 7.4%.
Venture capital fund Longwood Fund IV and funds managed by VC firm Bessemer Venture Partners (BVP) have 6.6% each while entities affiliated with GV (6.2%), a corporate venturing subsidiary of Alphabet, and Pitango Healthtech Fund (5.7%), part of VC firm Pitango, filled out the major shareholders.
TScan has raised roughly $160m in total, having most recently secured $100m in series C funding in a January 2021 round that included GV, NVF, 6 Dimensions Capital, BVP, Longwood Fund, Pitango HealthTech, RA Capital Management and funds and accounts managed by BlackRock.
The round also featured two unnamed healthcare-focused funds, which were likely entities affiliated with Baker Bros Advisors and JMD III, both of which were identified as participants in the IPO filing.
The company had completed $35m a series B round the year before co-led by Astellas and Novartis through Astellas Venture Management and Novartis Institutes for BioMedical Research respectively, and backed by GV, NVF, 6 Dimensions Capital, Longwood Fund, BVP and Pitango Healthtech.
TScan’s earliest funding was a $25m series A round in 2018 in which GV, NVF, 6 Dimensions Capital, BVP and Longwood Fund IV each supplied $5m.
