Panacea Acquisition, a blank check company formed by EcoR1 Capital targeting the biotech industry, raised $125 million by offering 12.5 million units at $10.
Each unit consists of one share of common stock and one-third of a warrant; whole warrants are exercisable at $11.50. EcoR1 Capital has committed to buy $25 million in units at the closing of a proposed acquisition in a forward purchase agreement. At pricing, the SPAC commands a market cap of $161 million. Primary shareholders include an affiliate of EcoR1 Capital and Cowen.
Panacea Acquisition plans to list on the NYSE under the symbol PANA.U. Cowen acted as lead manager on the deal.
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The SPAC is led by CEO and Chairman Oleg Nodelman, the founder and Portfolio Manager of San Francisco-based biotech venture firm EcoR1 Capital. The SPAC's other officers all hold roles at EcoR1, and several of its directors are associated with EcoR1 portfolio companies.
EcoR1 has been a venture investor on several 2020 biotech IPOs, including Avidity Biosciences (RNA; +57% from IPO), ORIC Pharmaceuticals (ORIC; +111%), and Akouos (AKUS; +32%).
Panacea Acquisition is the year's fifth healthcare-focused SPAC. Since 2018, 14 healthcare SPACs have priced IPOs, most of which have come in the past year. Well-known healthcare investment firms have recently formed successful SPACs, with multiple blank check companies from Deerfield Partners (DFHTU, DFPHU, AHCO) and Perceptive Advisors (ARYBU; ARYBU).
