University of Pennsylvania-linked Passage Bio issued 4.6 million more shares than originally planned to raise $216m, up more than 70% on its $125m original target.
Passage Bio, a US-based genetic medicines developer exploiting University of Pennsylvania research, raised $216m in an initial public offering yesterday after issuing 12 million shares priced at $18.
Passage Bio had hoped to raise $125m when it unveiled plans earlier this month to go public. It subsequently decided to issue 7.4 million shares priced at $16 to $18, before increasing the number of shares to 10 million yesterday morning and 12 million shortly afterwards.
The company will begin trading on the Nasdaq Global Select Market today, using the ticker symbol PASG.
Founded in 2017, Passage Bio is developing genetic therapies for rare, life-threatening central nervous system disorders that currently have limited or no approved treatment options.
It maintains a research, collaboration and licensing agreement with University of Pennsylvania’s Orphan Disease Center and Gene Therapy Program.
Proceeds from the offering have been allocated to the development of three drug candidates – aimed at frontotemporal dementia, lysosomal storage condition Krabbe disease and genetically inherited brain and spinal cord disorder GM1 gangliosidosis – through planned phase 1/2 trials.
The money will also allow Passage Bio to advance its pipeline and select additional candidates.
Passage Bio raised $226m ahead of its IPO. Access Biotechnology and Lilly Asia Ventures, respective subsidiaries of conglomerate Access Industries and pharmaceutical firm Eli Lilly, contributed to a $110m series B round in September 2019.
OrbiMed, New Leaf Venture Partners, Vivo Capital, Frazier Healthcare Partners, Versant Ventures, Highline Capital Management, Boxer Capital, Logos Capital and Sphera Funds Management also took part in the series B round.
OrbiMed previously led a $116m series A round in February 2019, with participation from Lilly Asia Ventures, Vivo Capital, Frazier Healthcare Partners, Versant Ventures and New Leaf Venture Partners.
OrbiMed was the company’s largest shareholder ahead of the offering, with a 19.6% stake, followed by Versant (14.8%), Frazier (13.9%), Lilly Asia Ventures (7.6%), New Leaf, and Vivo (7% each), co-founder James Wilson (6.9%) and Access Industries (6.5%).
JP Morgan Securities, Goldman Sachs and Cowen and Company are acting as joint book-running managers for the offering, while Chardan is serving as lead manager. The underwriters have been granted a 30-day option to purchase up to an additional 1.8 million shares.
