(Alliance News) - Healthcare-focused investment company Arix Bioscience PLC said Thursday its portfolio firm Imara Inc has priced its US initial public offering, causing an increase in the value of Arix's stake.
Imara has priced its IPO on the Nasdaq Global Select Market of 4.7 million shares at a price of USD16.00 each, for gross proceeds of USD75.2 million.
The IPO led to a GBP4.3 million increase in the value of Arix's 9.4% holding in Imara, which was valued at GBP10.7 million at the end of 2019.
In addition, the company will invest GBP2.3 million in the IPO to keep its 9.4% stake, giving a new total valuation of GBP19.4 million, suggesting Imara's total value is GBP206.4 million, or USD260.0 million.
Imara will use net proceeds from the IPO to advance the development of its lead product candidate, IMR-687, for the treatment of patients with sickle cell disease and beta-thalassemia, as well as working capital.
"Imara's lead candidate IMR-687 has potential to transform outcomes for people living with sickle cell disease by working on both the white-cell and red-cell aspects of the disease. This financing is an important milestone for Imara, with the company planning to use proceeds to advance clinical development of IMR-687 in both sickle cell disease and thalassemia," said Chief Executive Officer Joe Anderson.
Shares in Arix Biosciences were down 0.1% at 76.90 pence on Thursday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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