Montreal cancer drug developer Repare Therapeutics Inc. increased the size and value of its impending Nasdaq initial public offering for the second time Wednesday, following a slew of well-received biotech IPOs south of the border in recent weeks.
The company said in a filing with the U.S. Securities and Exchange Commission it will now offer 10 million shares at US$18 to US$20 each. Its underwriters – Morgan Stanley, Goldman Sachs, Cowen and Piper Sandler – have the option to buy another 1.5 million shares at that price, which could yield gross proceeds of US$230-million
That’s up from a filing Monday in which Repare said it would offer 7.4 million shares plus 1.1 million for underwriters valued at US$16 to US$18 each. Repare revealed plans on May 29 to raise US$100-million.
In the past week, two California biotech developers, Vaxcyte Inc. and Avidity Biosciences LLC, saw their stocks pop by 50 per cent or more on their first day of trading. Several other stocks of drug developers have doubled in value since going public this year. If Repare follows in that path, it could be the latest in a string of Canadian biotechs to achieve US$1-billion valuations in the past two years.
This has been a strong year for biotech, beyond heightened interest in companies developing COVID-19 treatments, as stocks of many drug developers spiked after their IPOs. Another Canadian cancer treatment developer, Hamilton-based Fusion Pharmaceuticals is also in the process of going public on Nasdaq, while Chinook Therapeutics Inc., a kidney-disease drug developer jointly based in Vancouver and Seattle, said it would merge with Nasdaq-traded Aduro Biotech Inc. They follow three other Canadian biotech companies that went public or cross-listed on Nasdaq last year.
Repare is developing “precision oncology” drugs that attack genetic defects in cancerous tumors, preventing toxic cells from repairing their DNA. Repare aims to get its lead drug candidate into human trials this summer. In May, it struck a partnership with Bristol Myers Squibb to identify drug candidates.
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