One month after $115M megaround, muscle disease-focused Dyne goes public with $233M IPO
After completing a financing megaround for $115 million just a little over a month ago, Dyne Therapeutics is ready to hit the Nasdaq on Thursday.
The biotech has raised $233 million for its public offering after pricing shares at $19 apiece, above its expected range of $16 to $18. That’s an offering that’s well-upsized — by about 33% — after Dyne initially filed its S-1 in late August, when it estimated only a $100 million raise. Dyne will trade under the ticker $DYN.
More than four dozen biotechs have already gone public this year, surpassing the total from all of 2019. Combined, the companies have raised more than $11 billion in what continues to be a banner year for the industry. Over half of those biotechs, including Dyne, raised at least $200 million each.
Within the S-1, the company did not give much of a look behind the curtain regarding how it would use the proceeds from the raise. The filing indicated advancing R&D in preclinical programs and IND-enabling studies, but wouldn’t go any further than that.
Dyne focuses its research around muscle diseases, creating a platform that aims to use oligonucleotides to degrade RNA responsible for the disease. The theory goes that by linking an antibody to an oligonucleotide, therapies can be engineered to target muscle cells and degrade the RNA, avoiding toxicity-related problems.
The company’s lead program is developing therapies for myotonic dystrophy, a disease caused by an abnormal expansion in a region of the DMPK gene. Dyne hasn’t yet reached the clinic, but the company says that its preclinical studies showed a reversal of myotonia after a single dose in a disease model, durability of response up to 12 weeks and enhanced muscle distribution.
Further along the pipeline are programs for Duchenne muscular dystrophy and facioscapulohumeral muscular dystrophy, as well as discovery work in the cardiac and metabolic arenas.
Dyne going public Thursday is the latest in a series of quick jumps, as the company came out of stealth with a $50 million launch round backed by Atlas in April 2019. Executive chairman Jason Rhodes, a partner at the incubator, will own a 31.1% stake in the company, with Forbion’s Dirk Kersten getting 19.6% and MPM’s Edward Hurwitz owning 15.8%. The April round was followed by an additional $115 million in funding in early August, a round led by Vida Ventures and Surveyor Capital.
At the time of the August raise, Dyne remained mum on how its gene therapies, specifically for Duchenne, would compare to approaches at other companies like Sarepta, whose controversial Exondys 51 did not prove to be cost-effective nor particularly beneficial, according to ICER. The organization found that the impact of Sarepta’s therapy on Duchenne patients was unclear and wouldn’t reach cost-effectiveness below a $150,000 benchmark, a conclusion Sarepta called “fatally flawed.”
Social image: Joshua Brumm, Dyne CEO