Biotech boom: 6 biotechs are in line to go public starting next week

A wave of biotechs launched this week, putting six on the IPO calendar for the first two weeks of October. Many are late stage; four of them are entering or in pivotal trials, and three have begun generating revenue through contracts and licenses. Three of them are also targeting billion-dollar-plus valuations.

Swiss biotech ADC Therapeutics (ADCT) plans to raise $200 million by offering 8.2 million shares at a range of $23 to $26 to command a $1.8 billion diluted market cap. The company is developing antibody drug conjugates, and its pipeline consists of seven candidates targeting hematological malignancies and solid tumors. Its two lead candidates are in pivotal Phase 2 trials, one of which is in collaboration with Genmab (GMAB). Backed by Auven Therapeutics (38% post-IPO stake), the Wild family office (10%), and AstraZeneca (6%), the company has raised $559 million total, most recently in May 2019 at $22.40 per share. Insiders have indicated on $115 million of the IPO (58% of the deal).

Aprea Therapeutics (APRE), a Phase 3 biotech developing targeted therapies for cancer, plans to raise $75 million by offering 5.0 million shares at a range of $14 to $16 to command a $325 million market cap. The company’s pipeline contains two product candidates targeting three indications; lead candidate APR-246 is in a pivotal Phase 3 trial as a frontline treatment for TP53 mutant myelodysplastic syndromes with Orphan Drug and Fast Track status. Prominent backers include 5AM Ventures (13%), Versant Ventures (13%), and Redmile Group (10%).

Degenerative disease biotech Frequency Therapeutics (FREQ) plans to raise $101 million by offering 6.7 million shares at a range of $14 to $16 to command a $526 million market cap. The lead candidate in its pipeline is FX-322, which is being developed to treat sensorineural hearing loss, the permanent loss of sensory hair cells in the cochlea within the ear. The company plans to initiate a Phase 2a clinical trial for FX-322 in the 4Q19. To date, Frequency Therapeutics has raised $228 million privately, most recently $62 million in July 2019. Backers include Perceptive Advisors (6%) and Taiwania Capital (4%).

Monopar Therapeutics (MNPR) plans to raise $40 million by offering 4.4 million at a range of $8 to $10 to command a $130 million market cap. The company has three oncology-focused candidates in its pipeline. Its lead product candidate, Validive, is designed to reduce the incidence and effects of severe oral mucositis in patients undergoing chemoradiotherapy for oropharyngeal cancer. The company intends to begin a Phase 3 clinical trial for Validive in the 4Q19.

Viela Bio (VIE) plans to raise $150 million by offering 7.5 million shares at a range of $19 to $21 to command a $1.0 billion market cap. In early 2018, Viela Bio acquired molecules from AstraZeneca’s MedImmune, which now constitute the company's current product pipeline. The company's lead candidate, inebilizumab, is a humanized monoclonal antibody designed to target CD19 for neuromyelitis optica spectrum disorder (NMOSD), a rare condition that attacks the nervous system. In August 2019, the FDA accepted for review the company's Biologics License Application for inebilizumab, with potential approval in the 1H20. To date, Viela Bio has raised $467 million privately, most recently raising $80 million in September 2019. Prominent backers include AstraZeneca (29%), Boyu Capital (18%), and Hillhouse Capital (9%).

The largest of this group by deal size and market cap, German biotech BioNTech (BNTX) plans to raise $251 million by offering 13.2 million shares at a range of $18 to $20 to command a $4.5 billion market cap. The company works with mRNA therapeutics, engineered cell therapies, antibodies, and small molecule immunomodulators in its extensive pipeline. Its most advanced candidate is an mRNA therapy developed in collaboration with Genentech, currently in a Phase 2 trial for melanoma, with topline data expected in the 1H20. To date, BioNTech has raised $1.3 billion through private funding, most recently $324 million in August 2019. Backers include the Strüngmann family office (49%), MIG Fonds (6%), and Fidelity Investments (5%).

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