Regulus sets $10-12 price range for $55m IPO
This article was originally published in Scrip
Regulus Therapeutics said in a filing with the US Securities and Exchange Commission (SEC) on 7 September that it will price its forthcoming initial public offering at $10 to $12 per share, raising up to $54.5 million from the sale of 4.5 million shares, plus about $25 million from a concurrent sale of nearly 2.3 million shares in a private placement with AstraZeneca.
Previously, San Diego-based Regulus - co-founded in 2007 by RNA specialists Isis Pharmaceuticals in nearby Carlsbad and Alnylam Pharmaceuticals in Cambridge, Massachusetts - said it would raise up to $57.5 million through the IPO (scripintelligence.com, 21 August 2012).
The company said it would gain another $25 million from the separate transaction with AstraZeneca, which agreed to make an equity investment in Regulus as part of its $28 million upfront payment under an agreement to co-develop microRNA therapeutics for cardiovascular and metabolic diseases as well as oncology (scripintelligence.com, 15 August 2012).
A day after the AstraZeneca deal was announced in August, Regulus said it entered into a partnership with Biogen Idec to identify microRNAs as biomarkers for multiple sclerosis (scripintelligence.com, 17 August 2012). The company earned $750,000 upfront and $5 million from the sale of a convertible promissory note to Biogen Idec, and it is eligible to receive up to $1.3 million in milestone payments.
Regulus indicated in both its S-1 registration statement and amended S-1 filed with the SEC that three of its strategic partners will invest in the company's IPO. Sanofi plans to buy up to $10 million worth of common stock, with Isis and GlaxoSmithKline looking to make $2 million stock purchases.
A collaboration agreement signed with Sanofi in 2010 for up to four microRNA therapeutics is worth up to $750 million in upfront and milestone payments plus royalties.
Regulus entered into a partnership with GSK for up to $600 million to develop as many as four microRNA therapeutics for immune-inflammatory indications, and the companies' agreement was expanded by up to $144 million in 2010 to include hepatitis C.