Osage University Partners has celebrated an exit as migraine treatment developer Satsuma Pharmaceuticals listed on the Nasdaq Global Market following an $82.5m offering.
Satsuma Pharmaceuticals, a US-based migraine therapy developer backed by spinout-focused investment firm Osage University Partners, priced its shares at $15 on Thursday and raised $82.5m in its initial public offering.
The company, which had targeted $86.3m in proceeds, issued 5.5 million shares on the Nasdaq Global Market. They reached a peak of $19.90 before closing at $16.90 on Friday, giving Satsuma a market cap of more than $280m.
Spun out of contract researcher Shin Nippon Biomedical Laboratories in 2016, Satsuma is working on an acute migraine treatment, STS101, that consists of a dry-powder formulation of a chemical compound called dihydroergotamine mesylate administered through a nasal spray.
Proceeds from the initial public offering have been allocated to phase 3 trials and manufacturing activities for STS101.
Satsuma obtained $74m in equity financing ahead of its flotation. RA Capital Management and TPG Biotech, a life sciences arm of private equity group TPG, co-led a $12m series A round in early 2017.
Osage University Partners participated in a $62m series B round that was led by Wellington Management Company in April 2019. Shin Nippon Biomedical Laboratories and SBI Investment, a subsidiary of financial services firm SBI also took part in the series B round.
RA Capital Management, TPG Biotech, Caxton Alternative Management vehicle Cam Capital, Surveyor Capital, Eventide Asset Management, Cormorant Asset Management and Lumira Ventures filled out the round.
All shareholders owning more than 5% ahead of the offering purchased additional stock as part of the IPO to retain their positions as notable stockholders.
Osage owns 5.6% following the IPO, having previously maintained a 6% stake. The company’s largest shareholder remains RA Capital (from 30.2% to 28.2%), followed by Wellington, which increased its stake from 10% to 14.5%.
Citadel, Eventide and Cormorant similarly grew their stakes from 5% each to 6.4%, 5.9% and 5.2% respectively. Other notable shareholders include TPG Biotech (11.4% post-IPO), Shin Nippon (9.4%) and Cam Capital (5.3%).
Credit Suisse Securities (USA), SVB Leerink and Evercore Group are the joint book-running managers for the offering. They have been granted a 30-day option to purchase up to an additional 825,000 shares.
