McMaster University spinout Fusion Pharmaceuticals has filed for a $100m IPO in the US, putting shareholders such as Facit in line for exits.
Fusion Pharmaceuticals, a Canada-based cancer radiopharmaceuticals developer spun out of McMaster University, has filed for a $100m initial public offering on the Nasdaq Global Market.
The company has not yet settled on a price range or determined the number of shares it will issue.
Founded in 2014, Fusion Pharmaceuticals is developing targeted alpha therapeutics, a type of cancer treatment that relies on equipping molecules, such as antibodies, with radioactive particles – called alpha emitting medical isotopes – to kill cancer cells.
Alpha particles are able to travel only a short distance, making it possible to localise radiation and avoid damage to healthy tissue surrounding the tumour.
The spinout’s lead asset, FPI-1434, is undergoing phase 1 studies in an injected form for advanced, refractory solid tumours.
Fusion said in its prospectus it had been forced to pause further recruitment as the pandemic led to clinical trial sites to be closed. It has administered the drug to 12 patients to date, out of a planned 30.
Proceeds from the proposed offering would go towards the continued development of FPI-1434 as a monotherapy and a combination therapy. The money would also fund the development and expansion of Fusion’s pipeline and support R&D activities.
Fusion most recently secured nearly $112m in a series B round closed this month, after an initial tranche in April 2019 was led by oncology technology provider Varian Medical Systems and backed by Fight Against Cancer Innovation Trust (Facit), a commercialisation unit backed by Ontario Institute for Cancer Research and the province of Ontario. Canada Pension Plan Investment Board (CPPIB) subsequently joined the round in March 2020.
Healthcare group Johnson & Johnson’s corporate venturing subsidiary Johnson & Johnson Innovation – JJDC also took part in the original series B close, as did Pivotal BioVenture Partners, OrbiMed, Perceptive Advisors, Rock Springs Capital, HealthCap, Adams Street Partners, TPG Biotech, Seroba Life Sciences and Genesys Capital.
Fusion had already collected $46m in series A funding in 2017 from Varian, Johnson & Johnson Innovation – JJDC, Adams Street Partners, Seroba Life Sciences, HealthCap, Genesys Capital, Facit and TPG Biotech.
HealthCap is Fusion’s largest shareholder ahead of the IPO, with a 12.6% stake, followed by Adams Street (12.3%), Varian (11.3%), Johnson & Johnson (10.4%), CPPIB (8.5%), TPG (8.1%), OrbiMed (7.8%) and Seroba (6.5%).
Morgan Stanley, Jefferies, Cowen and Company, and Wedbush Securities have been appointed as underwriters for the offering.
