Zealand bags a $77M IPO haul as investors embrace another biotech offering
Copenhagen-based Zealand Pharma is the latest biotech to march out onto Nasdaq this year. The peptide drug developer — closely allied with Sanofi — raised $77 million after selling an upsized package of 4.4 million shares at the very precise figure of $17.87 each. And that can jump to about $90 million if the underwriters step up for their allotment.
Zealand outlicensed the diabetes drug lixisenatide to Sanofi while it concentrates on its lead development program for glepaglutide, a GLP-2 drug that has been in mid-stage development for short bowel syndrome. The biotech reported in June that their drug had hit the primary endpoint in the Phase II.
There’s also a clinical program in place for dasiglucagon, designed to increase levels of blood glucose, with plans to eventually market it for insulin shock.
This is no startup.
Already listed in Europe, the 20-year-old Zealand crossed the Atlantic following AC Immune and other European biotechs who found some compelling reasons to raise cash on Nasdaq this year. That argument in favor of a US IPO has grown stronger over the last two months as a steady drumbeat of biotech IPOs underscored a steadfast, if unspectacular, demand for new biotech stocks.