Mirum Pharmaceuticals has raised $75m in its initial public offering that had an initial target of $86.3m and provided exits to Novo and Shire.
Mirum Pharmaceuticals, a US-based liver disease therapy developer backed by pharmaceutical firms Shire and Novo, issued 5 million shares priced at $15 on Wednesday to raise $75m in its initial public offering.
The company began trading on the Nasdaq Global Market yesterday and saw its shares drop as low as $12.72 before recovering slightly to close at $13.21, giving Mirum a market cap of $304m. Mirum had hoped to raise as much as $86. 3m in the IPO.
Founded in 2018, Mirum is working on therapies for orphan liver diseases. It will use between $95m and $105m of proceeds towards phase 3 trials of its lead asset, Maralixibat, in progressive familial intrahepatic cholestasis and Alagille syndrome.
Another $30m to $40m will enable a phase 2 study for a second candidate, Volixibat, aimed at intrahepatic cholestasis of pregnancy and primary sclerosing cholangitis.
Mirum’s only external round was a $120m series A completed in November 2018 that featured Novo and was led by New Enterprise Associates (NEA). Deerfield Management, Frazier Healthcare Partners, Rock Springs Capital, Pappas Capital and RiverVest Venture Partners also took part.
Shire’s 10.3% shareholding has been diluted to 8.1%, with the corporate having received equity in exchange for a license to Maralixibat. Novo’s stake has similarly dropped from 10.4% to 8.1%.
Mirum’s largest shareholder remains NEA, whose stake has been diluted from 20.8% ahead of the IPO to 16.3%. Other notable shareholders include Deerfield and Frazier (each own 13.6% post-IPO) and RiverVest (7.1%).
Underwriters Citigroup Global Markets, Evercore Group, Guggenheim Securities, Raymond James & Associates and Roth Capital Partners have been granted a 30-day option to acquire up to an additional 750,000 of shares. The offering is set to conclude on July 22.
