5 cash-hun­gry biotechs crowd in­to Nas­daq in search of a $600M-plus wind­fall

The queue to get in­to Nas­daq just got a lot longer.

On Fri­day af­ter the mar­kets closed 5 more biotech’s tossed their S-1s in­to the mix, mark­ing at least 22 IPO pitch­es for the year to date. That falls in line next to the 20 biotechs that had gone pub­lic by this time last year — which marked an­oth­er busy year for pub­lic mar­ket de­buts and the cash they spin for R&D work.

We broke it out on a case-by-case ba­sis:

Der­ma­vant

Vivek Ra­maswamy Roivant

Vivek Ra­maswamy is a crea­ture of habit. He cre­ates drug de­vel­op­ers un­der his um­brel­la com­pa­ny Roivant, beefs up their pipelines with drugs aban­doned or gath­er­ing dust on Big Phar­ma shelves, hires an ex­pe­ri­enced leader to run the shop, and then steers the firm to an IPO. Af­ter tak­ing Ax­o­vant and My­ovant pub­lic — in a pair of IPOs that raised more than half a bil­lion dol­lars — Der­ma­vant is be­ing groomed for a pub­lic de­but. Af­ter buy­ing tap­inarof from GSK $GSK, the biotech is gun­ning for a $100 mil­lion IPO, un­der the sym­bol $DRMT, ac­cord­ing to a fil­ing post­ed on Fri­day.

Bridge­Bio

Neil Ku­mar End­points

Af­ter rais­ing about $299 mil­lion in Jan­u­ary, start­up mill Bridge­Bio is prim­ing it­self for a $225 mil­lion IPO. The Pa­lo Al­to, Cal­i­for­nia-based com­pa­ny has birthed a pletho­ra of star­tups such as Ei­dos, Navire, QED Ther­a­peu­tics and Pelle­Pharm, to fo­cus on ge­net­ic dis­eases, en­com­pass­ing der­ma­tol­ogy, on­col­o­gy, car­di­ol­o­gy, neu­rol­o­gy, en­docrinol­o­gy, re­nal dis­ease, and oph­thal­mol­o­gy. Run by Neil Ku­mar, Bridge­Bio now has 16 pro­grams, of which 4 are in or ap­proach­ing late-stage de­vel­op­ment. KKR owns a 10% stake in Bridge­Bio, which plans to list un­der the sym­bol $BBIO, ac­cord­ing to a fil­ing post­ed on Fri­day.

Atre­ca

Bank­ing in a be­he­moth $125 mil­lion last Sep­tem­ber — in its third round of fi­nanc­ing — the pre­clin­i­cal biotech Atre­ca is aim­ing for a $100 mil­lion pub­lic de­but. Run by John Or­win — who was in charge of Re­lyp­sa un­til its $1.5 bil­lion takeover — the com­pa­ny is fo­cused on im­munother­a­pies, by us­ing tis­sue sam­ples from can­cer pa­tients to gath­er ide­al an­ti­bod­ies, em­ploy­ing B cells as their sound­ing board, for use in sol­id tu­mors.

John Or­win Atre­ca

The Red­wood City, Cal­i­for­nia-based play­er ex­pects to sub­mit an FDA ap­pli­ca­tion to test its lead ex­per­i­men­tal drug, ATRC-101, in hu­mans in late 2019, and kick off an ear­ly-stage tri­al in ear­ly 2020. Bak­er Broth­ers Life Sci­ences and its af­fil­i­ates own 22.8% of the com­pa­ny’s class A shares — and all of its B shares — while oth­er big share­hold­ers in­clude: Hadley Har­bor Mas­ter In­vestors (12.5%), Bill & Melin­da Gates Foun­da­tion (9%) and Box­er Cap­i­tal (6.9%). Atre­ca is plan­ning to list un­der the sym­bol $BCEL, ac­cord­ing to a fil­ing post­ed on Fri­day.

Pre­vail Ther­a­peu­tics

Wad­ing deep­er in­to the biotech wa­ters, for­mer Co­lum­bia pro­fes­sor Asa Abe­liovich is tak­ing his Parkin­son’s gene ther­a­py project to the Nas­daq, look­ing to raise $100 mil­lion for Pre­vail Ther­a­peu­tics af­ter clos­ing a $50 mil­lion round just two months ago.

Asa Abe­liovich Pre­vail

Found­ed in 2017 in part­ner­ship with Or­biMed and The Sil­ver­stein Foun­da­tion,  the New York-based com­pa­ny vows to de­vel­op a broad­er set of AAV gene ther­a­pies for neu­rode­gen­er­a­tive dis­eases, with a fo­cus on ge­net­i­cal­ly de­fined pa­tient pop­u­la­tions. In Parkin­son’s, that means tar­get­ing the GBA1 mu­ta­tion — an un­der­ly­ing dri­ver of the (less com­mon) neu­ro­log­i­cal man­i­fes­ta­tions of a com­mon lyso­so­mal stor­age dis­or­der known as Gauch­er dis­ease. Ad­di­tion­al pro­grams in­clude PR006 for fron­totem­po­ral de­men­tia with GRN mu­ta­tion and PR004 for the treat­ment of synu­cle­inopathies, pre­clin­i­cal stud­ies of which are to be fund­ed by the IPO wind­fall.

Abe­liovich, who helped co-found high pro­file Alzheimer’s biotech Alec­tor, owns 10.1% of the stock. But Or­biMed has the li­on’s share here: Its 48.6% own­er­ship dwarfs Re­genxbio’s 9.1%, RA Cap­i­tal’s 8.1%, Pon­tif­ax’ 5.9% or EcoR1 Cap­i­tal’s 5.8%. Pre­vail plans to list as $PRVL.

Akero Ther­a­peu­tics

It’s bare­ly been a year since Akero threw its NASH can­di­date in­to the crowd­ed space from out of left field. In the months that fol­lowed, it added $70 mil­lion to its orig­i­nal $65 mil­lion cash re­serve, wooed Gilead vet An­drew Cheng as CEO, and se­cured an IND for the next phase in the clin­ic. And if it all goes ac­cord­ing to plan, it will be cel­e­brat­ing its biotech an­niver­sary with $86 mil­lion in IPO mon­ey.

An­drew Cheng Akero

In the S-1, Akero once again out­lined the case for its FGF21 ana­log — in-li­censed from Am­gen $AMGN — in dis­rupt­ing dis­ease pro­gres­sion, start­ing from the fat ac­cu­mu­la­tion that is be­lieved to cause cell stress. Af­ter treat­ing 83 type 2 di­a­betes pa­tients with the drug, in­ves­ti­ga­tors ob­served bet­ter plas­ma lipopro­tein lev­els and in­sulin sen­si­tiv­i­ty, in­di­cat­ing “the po­ten­tial of AKR-001 to redi­rect calo­ries away from the liv­er, re­duce liv­er fat, al­le­vi­ate he­pa­to­cyte stress, in­hib­it in­flam­ma­tion and re­solve fi­bro­sis in pa­tients with NASH, as well as re­duce sus­cep­ti­bil­i­ty to car­dio­vas­cu­lar dis­ease” — a ma­jor cause of death for these pa­tients.

The biotech, now lo­cat­ed in San Fran­cis­co, al­so dis­closed that Am­gen gained a 7.8% stake from the deal in ad­di­tion to the $5 mil­lion up­front pay­ment. Clin­i­cal mile­stones to­tal $40 mil­lion and Akero could pay $75 mil­lion more if the drug makes it to the mar­ket. Ap­ple Tree Part­ners is the biggest share­hold­er here with 18.5%, while At­las, ven­Bio and Ver­sant each claims 15.2%. The pro­ceeds will go to­ward a planned Phase IIa tri­al con­firm­ing this the­o­ry as well as man­u­fac­tur­ing and oth­er ef­forts to beef up the clin­i­cal pipeline.


Im­age: Shut­ter­stock

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Over the last 24 years, Legorreta’s Royalty Pharma group has become, by its own reckoning, the biggest buyer of drug royalties in the world. The CEO and founder has bought up a stake in a lengthy list of the world’s biggest drug franchises, spending $18 billion in the process — $2.2 billion last year alone. And he’s become one of the best-paid execs in the industry, reaping $28 million from the cash flow last year while reserving 20% of the cash flow, less expenses, for himself.

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Ab­b­Vie wins an ap­proval in uter­ine fi­broid-as­so­ci­at­ed heavy bleed­ing. Are ri­vals My­ovant and Ob­sE­va far be­hind?

Women expel on average about 2 to 3 tablespoons of blood during their time of the month. But with uterine fibroids, heavy bleeding is typical — a third of a cup or more. Drugmakers have been working on oral therapies to try and stem the flow, and as expected, AbbVie and their partners at Neurocrine Biosciences are the first to make it across the finish line.

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David Chang, Allogene CEO (Jeff Rumans)

Head­ed to PhII: Al­lo­gene CEO David Chang com­pletes a pos­i­tive ear­ly snap­shot of their off-the-shelf CAR-T pi­o­neer

Allogene CEO David Chang has completed the upbeat first portrait of the biotech’s off-the-shelf CAR-T contender ALLO-501 at virtual ASCO today, keeping all eyes on a drug that will now try to go on to replace the first-wave personalized pioneers he helped create.

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Sanofi brings in 4 new ex­ec­u­tives in con­tin­ued shake-up, as vac­cines and con­sumer health chief head out the door

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Fabrice Chouraqui, Cellarity CEO-partner (LinkedIn)

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Dan O'Day, Gilead CEO (Andrew Harnik, AP Images)

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Paul Hudson, Sanofi CEO (Getty Images)

Sanofi CEO Paul Hud­son has $23B burn­ing a hole in his pock­et. And here are some hints on how he plans to spend that

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Roger Perlmutter, Merck R&D chief (YouTube)

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