AAA Xeris formulates $75m IPO filing

Xeris formulates $75m IPO filing

Medicine producer Institut Mérieux is in line for an exit from US-based drug formulation developer Xeris Pharmaceuticals, which has filed to raise up to $75m in an initial public offering.

Xeris is working on injectable and infusible drug formulations based on its formulation technology platforms, XeriSol and XeriJect. Its lead product is a ready-to-use pen that injects glucagon to treat hypoglycaemia – insufficient blood sugar – in diabetes patients.

The IPO proceeds will be used to scale the company’s sales and marketing, inventory and organisational capabilities as it prepares for a full release of the Glucagon Rescue Pen. It will also advance a pipeline of five additional products in development.

The offering follows $100m in equity funding and $52m in debt financing. Institut Mérieux subsidiary Mérieux Développement was among the investors in the company’s latest round, an $85m series C that closed in March this year.

Wild Basin Investments, Redmile Group, Deerfield Management, Sabby Management, McNair Group and various Xeris executives also took part in the round, which was closed alongside $45m in debt financing from Silicon Valley Bank and Oxford Finance.

Mérieux owns a 6.2% share of Xeris through a vehicle called Mérieux Participations 2. The company’s other main shareholders are Palmetto Partners (13.9%), Deerfield and Redmile (12.3% each).

Xeris is set to float on the Nasdaq Global Market. Jefferies, Leerink Partners, RBC Capital Markets and Mizuho Securities are the underwriters for the offering.

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