Belldegrun and Chang groom their biotech unicorn Allogene for a monster $288M — or so — IPO
Arie Belldegrun and David Chang are thinking big again, of course.
Today the pair running the biotech startup Allogene, a CAR-T company $ALLO looking to make history pioneering off-the-shelf cell therapeutics, outlined plans to sell 16 million shares in the company at $16 to $18 a share. That’s $288 million at the top of the range — though these 2 may not be satisfied with anything less than more.
According to Renaissance Capital, the IPO assigns Allogene a fully diluted market value of $2.1 billion and an enterprise value of $1.4 billion. Belldegrun will own 10.9% of that, according to the S-1, while Chang, the CEO, is in for 3.9%.
Allogene landed with a mighty splash in 2017, arriving complete with a portfolio of drugs it had in-licensed from Pfizer and a rep that Belldegrun & Chang had forged at Kite — acquired for $12 billion — for building top-performing teams which knew how to move fast.
In short order they raised a $300 million round in the spring, quickly followed by a $120 million more and now something on the order of $300 million to add to that. That would be more than $700 million in 6 months time.
It’s likely to set the record for biotech IPOs this year, which is shaping up as one of the biggest — of not the biggest — years in the past decade. Rubius achieved a total of around $277 million — a jaw-dropping amount for a preclinical company.
Goldman Sachs, JP Morgan, Cowen and Jefferies are the joint bookrunners on the deal, which analysts expect to price during the week of October 8, coming up.