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Alector kicking off the year with USD 150mn IPO registration
Posted on Tuesday, 08 January 2019 12:41
Biotechnology start-up Alector has filed documents with US regulators to launch an initial public offering (IPO) on Nasdaq with plans to raise around USD 150.00 million.

The company makes clinical-stage pharmaceutical products that help the immune system to attack foreign invaders that can ultimately trigger Alzheimer’s disease and other neurological problems.

Exact details of the stock market flotation, including the number of shares being sold and at what price, have not yet been disclosed.

The proposed cash to be raised is also used as a placeholder to calculate registration fees and therefore the final amount may be different.

Alector has appointed Morgan Stanley, Bank of America Merrill Lynch, Cowen and Barclays as joint underwriters for the listing.

The group is focused on developing therapies to treat neurodegenerative and brain diseases, with its candidates including clinical trials for frontotemporal dementia, caused by loss of neurons in the frontal lobes, as well as Alzheimer’s disease.

San Francisco-based Alector generates revenue through collaborations and grants, it recorded turnover of USD 18.53 million in the nine months ended 30th September 2018, up significantly from USD 676,000 in the corresponding period of 2017.

The business accumulated a deficit of USD 97.10 million at the same date, with net loss for the opening three quarters of last year totalling USD 34.88 million, widened from a loss of USD 22.70 million in Q1-3 2017.

Alector raised USD 133.00 million in a series E round of funding in July 2018.

This deal, backed by Deerfield Management, AbbVie Ventures, New Leaf Venture Partners and OrbiMed, among others, helped to advance the group’s broad portfolio of immuno-neurology and immuno-oncology programmes.

Zephyr, the M&A database published by Bureau van Dijk, shows that a total 67 IPOs were announced in the pharmaceutical and medicine manufacturing industry last year, only one of which exceeded USD 1.00 billion.

This involved animal drug maker Elanco Animal Health raising USD 1.45 billion via its flotation on the New York Stock Exchange in August.

Moderna, Innovent Biologics, Dermapharm Holdings and CSPC Innovation Pharmaceutical, among others, also announced plans to go public in 2018.

© Zephus Ltd