Clementia keeps the biotech IPO party going with $120M play on an upsized offering
David Mott, the prolific New Enterprise Associates general partner, has another successful IPO under his belt for another one of his portfolio companies.
Quebec-based Clementia Pharmaceuticals $CMTA, which picked up a failed drug from Roche and repurposed it for a pair of ultra-rare diseases, raised $120 million today after pricing 8 million shares at $15.
That rings the bell at the top of the range with an upsized offering, just the latest indicator that the IPO window remains open for the right biotechs.
Mott took the lead position for Clementia’s $60 million round in 2015, heading a group that includes RA Capital, a noteworthy crossover investor which likes to gamble on near-term catalysts. RA was also behind Biohaven $BHVN when that company recently went public. Clementia has a chance to add to the haul if its underwriters pick up their option on 1.2 million shares.
Clementia now has the funds to aim at a marketing approval for rare diseases while early backers scored again with therapies that came off the shelf of a major developer. Biohaven grabbed a late-stage asset from Bristol-Myers ahead of its IPO, and Vivek Ramaswamy has been building a portfolio of biotechs out of assets outlicensed from the major players.
Roche tried and failed to prove the drug — palovarotene — could work against emphysema in an 825-patient study. But while the pharma giant was shelving the drug, research spotlighted the role that similar retinoic acid receptor gamma agonists could play in preventing bone formation as well as fibrosis.
Now Clementia has it in Phase III for fibrodysplasia ossificans progressiva (FOP) and multiple osteochondroma (MO), both related to bone formation.