Three more biotechs filed late Friday to go public on NASDAQ, adding new companies to a 2018 class of IPOs that could surpass 2015’s record for funds raised. The group includes NGM Biopharmaceuticals Inc. (South San Francisco, Calif.), Arog Pharmaceuticals Inc. (Dallas, Tex.) and Gamida Cell Ltd. (Jerusalem, Israel).
NGM, a liver disease and metabolic company, filed to raise up to $75 million in a listing. Among the company’s five clinical candidates, the most advanced, NGM282, is due to begin a Phase IIb trial in 1Q19 to treat non-alcoholic steatohepatitis (NASH). The listing’s underwriters are Goldman Sachs, Citigroup and Cowen.
NGM282, an engineered form of fibroblast growth factor 19 (FGF19), is wholly owned by the company. The company said preliminary results of Phase II studies have shown that the molecule significantly reduced liver fat and improved liver histology and fibrosis.
In 2015, NGM entered a broad collaboration with Merck & Co. Inc. (NYSE:MRK) giving the pharma exclusive, worldwide rights to its program targeting growth differentiation factor 15 (GDF15) and options to other programs, not including those targeting FGF19.
Next year, Merck plans to start two of NGM’s engineered variants of GDF15 to treat obesity, including a Phase IIa trial of NGM386 and a Phase I trial of NGM395.
By year end, Merck may opt to license NGM313, the biotech’s mAb activating the klotho ? (KLB)-FGF receptor 1c isoform (FGFR1c) complex. Preliminary data from a Phase Ib trial showed that NGM313 led to a significant reduction in liver fat in patients with non-alcoholic fatty liver disease (NAFLD).
The biotech’s NGM120, an agonist of GDNF family receptor ? like (GFRAL) designed to inhibit the effects of GDF15 elevations, is due to start a Phase Ib trial next half in cancer patients with anorexia/cachexia syndrome. Merck may opt to license that program after proof of concept (see “Appetite for GFRAL”).
Since beginning operations in 2008, NGM has raised $294.9 million in equity funding. Under its deal with Merck, the pharma has paid NGM $94 million up front, purchased $106 million in equity, and has reimbursed $189 million to NGM for R&D through June 30.
The Column Group is NGM’s largest shareholder with 25%. Merck owns 16%, while Prospect Ventures and Topspin Fund each hold about 9% and Rho Ventures has 7%.
Last month, NGM shuffled its management team. William Rieflin, who had been CEO since 2010, became executive chairman, while CFO David Woodhouse became CEO.
Arog filed to raise up to $74.8 million in its offering. Underwriters are Citigroup, RBC Capital Markets and Nomura. The company’s crenolanib is in two Phase III trials to treat FMS-like tyrosine kinase 3 (FLT3; CD135)-mutant acute myelogenous leukemia (AML). It is also in a Phase III trial to treat patients with gastrointestinal stromal tumors (GIST) with a specific mutation in the platelet derived growth factor receptor ? (PDGFR?) gene. The therapy has Orphan Drug designation in the U.S. and EU and Fast Track designation in the U.S. for both indications.
Gamida hopes to raise $69 million through its listing. BMO Capital Markets, RBC Capital Markets, Needham and Oppenheimer are underwriters. Its lead program is NiCord, which consists of umbilical cord blood-derived ex vivo nicotinamide-expanded hematopoietic stem and progenitor cells. Top-line data are due in 1H20 from a Phase III trial of the product as a universal stem cell graft in blood cancer patients who require a hematopoietic stem cell transplant (HSCT).
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