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IPO Profile: Canadian company Clementia only VC-backed IPO in August

Only one venture-backed IPO took place in August. The distinction belongs to Montréal biopharmaceutical company Clementia Pharmaceuticals Inc, which last month raised about $120 million from its IPO on the Nasdaq. The news was noted by BDC Capital Healthcare Fund, an investor in Clementia since 2012. The company’s other backers include Fonds de solidarité FTQJanus HendersonOrbiMed Advisors and New Enterprise Associates.

Clementia’s IPO is the second completed this year by a Canadian life sciences company. In May, Vancouver’s Zymeworks Inc secured about $64 million) from its Canadian and U.S. offering.

In addition, Clementia raised an additional $17.9 million in proceeds from the offering’s greenshoe option, bringing total proceeds to about $137 million. The company, who’s shares began trading on Nasdaq under the symbol “CMTA,” was founded in 2010. —Kirk Falconer

IPO Profile: Clementia Pharmaceuticals Inc

Company Details

Montreal, Quebec

1-514-940-3600

http://clementiapharma.com/

Description: Clementia Pharmaceuticals Inc is a clinical stage biopharmaceutical company. The company is engaged in developing disease-modifying treatments for patients suffering from debilitating bone and other diseases with high unmet medical need. Its lead product candidate, palovarotene, is an oral small molecule that binds and activates retinoic acid receptor gamma (an RARg agonist), and has activity in preventing abnormal new bone formation as well as scar tissue formation (or fibrosis) in a variety of tissues in animal models. It is developing palovarotene for the treatment of Fibrodysplasia Ossificans Progressiva (FOP) and Multiple Osteochondroma (MO). Its programs focus on diseases involving tissue transformation via retinoic acid receptors (RARs). The company also has an eye drop formulation of palovarotene that can potently increase tear production and decrease corneal damage.

IPO Details

Exchange and Ticker: Nasdaq: CMTA

Filing Range: 8 million shares @ $13 to $15 a share

Date of IPO: 8/2/17

Offering Price: $15

Closing Price on 8/2/17: $16.35

Offering Size: $120 million

Shares Outstanding: 31.7 million

Closing Price on 8/31/17: $16.33

Market Capitalization on 8/31/17: $517.95 million

Underwriters: Morgan Stanley & Co, Leerink Partners LLC

Co-managers: Wedbush Securities, BTIG LLC

Company Counsel: Jenner & Block

Manager Counsel: Ropes & Gray

Auditor: KPMG

Investment Details

Backers

  • Business Development Bank of Canada
  • OrbiMed Advisors
  • New Enterprise Associates
  • Solidarity Fund QFL
  • EcoR1 Capital
  • RA Capital Management

Total funding raised: $102 million

Source: Thomson Reuters

Download: IPO Aftermarket as of Aug. 31, 2017

Photo of Scrabble game tiles for IPO courtesy of PictureLake/iStock/Getty Images

 

Additional Data

Historical number of VC-backed IPOs in August

Historical proceeds of VC-backed IPOs in August