Teva spinout delays NASH IPO while Galera prices below range
A NASH-focused spinoff of Teva Pharmaceuticals delayed its IPO and Galera priced below its $14-$16 range as the public waters grow murkier.
Touting an FGF21 analog cleaved off Teva’s pipeline, 89bio would have gone from Series A to Wall Street in less than a year had they completed the IPO they announced last month. Now, they’re being held up over an “issue” with the SEC and the company’s auditors said it could put the company in jeopardy.
The company said in its S-1 that “Our financial condition raises substantial doubt as to our ability to continue as a going concern.” They had $22 million cash on hand as of June 30, which, as STAT’s Damian Garde noted, would only see them through the end of the year at their current burn rate.
Galera announced in October they were gunning for an $86 million offering to help fund their enzyme-based remedy to oral mucositis, a nasty side effect to radiation therapy. Instead, they priced at $12 per share – a rate that puts them on track to raise $60 million, or $26 million less than the goal.
It’s been a mixed bag of late for biotechs seeking to make it on Wall Street. Last month, Phathom Therapeutics brought home $182 million, but Cabaletta fell $12 million short of its fundraising goal even after upsizing the offering by a million shares. Twelve million, though, is small in comparison to BioNTech, who came up over $100 million short at the beginning of the month. Before that, George Scangos’ Vir Therapeutics priced at the low end of its ultimately $143 million offering and ADC Therapeutics canceled its IPO entirely.
FGF21, or plasma fibroblast growth factor 21, plays a natural role in metabolism and signaling and is thought to have a hand in NASH, a disorder involving inflammation and damage from fat buildup in the liver. The idea of using the hormone in NASH treatments is not new but 89Bio touts its version, BIO89-100, as more durable and tolerable.
Galera is in the midst of a 365-person Phase III clinical trial for its lead compound, GC4419. It’s a copy of the naturally occurring enzyme superoxide dismutase and is used to turn superoxide, a compound that accumulates under radiation and can cause side effects, into hydrogen peroxide.