PepGen raised $ 108 million in gross profit from the initial public offering, selling $ 9 million in shares for $ 12 through BofA, SVB and Stifel Nicolaus.
The deal was increased from the proposed 7.2 million shares, but fell in price from a market range of $ 13 to $ 15, reaching just over the filed size, which would yield $ 101 million in the mid-range.
The company begins public life with a market capitalization of $ 268 million, and the shares will begin trading on Friday at the Nasdaq Global Select Market under the symbol PEPG.
PepGen, based in Cambridge, Massachusetts, is developing treatments for serious genetic diseases, with an initial focus on neuromuscular disease.
The original goal of the campaign
Duchenne Muscular Dystrophy (DMD)a debilitating disease that affects predominantly men.
DMD is the result of genetic mutations in a gene that encodes dystrophin, a protein critical to healthy muscle function. Although MDD is classified as a rare disease, it is one of the most common with an incidence of approximately one in every 3,500-5,000 men.
DMD is characterized by progressive muscle weakness, which leads to patients losing the ability to walk, upper body function, heart problems and difficulty breathing. DMD is invariably fatal at a young age.
The PepGen Conveyor is based on its patented Enhanced Delivery Oligonucleotide (EDO) platform, which is designed to improve the activity and tolerability of therapeutic agents.
The company’s EDO peptides have demonstrated the ability to transport oligonucleotides – short single strands of DNA or RNA – across a wide range of target tissues, including smooth, skeletal and heart muscle, as well as the central nervous system.
Like a big hat Bausch + Lombwhich also debuts on Friday, PepGen was unlucky with the timing of the IPO, given significant market fluctuations.
However, we are encouraged by the fact that, unlike Bausch + Lomb, PepGen was able to increase what it was looking for, slightly above the target market value.
Companies at this stage of development are certainly difficult to assess, but we have reason to be optimistic about this biotechnology with little capital.
- The company was founded in 2018 using technology from the University of Oxford and the UK Council for Medical Research and Innovation.
- On April 6, 2022, PepGen announced that it was dosing its first patient in the Canadian Phase 1 study PGN-EDO51, the leading product of the candidate company for the treatment of MDD.
- Existing treatments are limited to poor delivery to muscle tissue and have yet to establish significant clinical benefits for patients with MDD.
- Those who are watching what the FDA is doing with potential DMD treatments know that the agency is committed to approving any drug that shows even nominal benefits.
- If the EDO PepGen platform successfully impacts DMD, we expect the FDA to accelerate regulatory requirements.
- CEO James MacArthur has 25 years of experience as a co-founder of many biotechnology companies dealing with rare diseases.
- As of December 31, 2021, the company had $ 133 million in cash and cash equivalents. This deal adds to that amount about $ 100 million, which is a big military chest for the company at this stage.
- This monetary value also makes stocks a relatively inexpensive option on the company’s EDO platform.
Source: Stock news
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