ProQR Therapeutics, a Dutch biotech developing mRNA treatments for cystic fibrosis, announced terms for its IPO on Monday. The Leiden, Netherlands-based company plans to raise $75 million by offering 6.3 million shares at a price range of $11 to $13. At the midpoint of the proposed range, ProQR Therapeutics would command a fully diluted market value of $252 million.
ProQR points out that cystic fibrosis is one of the world's most common fatal inherited disease, with an estimated 85,000 patients worldwide. Its technique targets and repairs defective messenger RNA that cause the underlying genetic mutation, which it believes to be superior to small molecule and gene therapy treatments. ProQR plans to file an IND with the FDA in the 4Q for its Phase 1 trial, with top-line data expected in the 4Q15. The company also plans to use its mRNA repair approach to develop a therapy for Leber’s Congenital Amaurosis (Phase 1 trials expected in 2016), a genetic cause of blindness in children, and has identified a broad range of potential genetic disease candidates.
The year's other early-stage mRNA biotech, Dicerna Pharmaceuticals (DRNA), had the year's best first-day pop and the worst aftermarket performance. Dicerna gained 207% on its first day after pricing above the range and dropped 70% since then for a total return of -8%. Like Dicerna, ProQR has massive potential in a market with an unmet need, but must convince investors that those benefits offset the risks associated with biotech in such an early-stage of development.
ProQR Therapeutics, which was founded in 2012 and booked $0 million in sales for the 12 months ended June 30, 2014, plans to list on the NASDAQ under the symbol PRQR. ProQR Therapeutics initially filed confidentially on 7/11/2014. Leerink Partners and Deutsche Bank are the joint bookrunners on the deal.
