Apellis Pharmaceuticals Inc., of Crestwood, Ky., said it closed its private offering of $220 million aggregate principal amount of 3.5% convertible senior notes due 2026. The initial purchasers of the notes have been granted a 13-day option to purchase up to an additional $33 million of the notes, solely to cover overallotments. The company estimates the net proceeds from the sale of the notes will be approximately $212.9 million (or approximately $244.9 million if the initial purchasers exercise in full their option to purchase additional notes). Apellis used about $28.4 million of the net proceeds to pay the cost of the capped call transactions and will use the remainder to fund clinical development of APL-2 (pegcetacoplan), a drug designed to inhibit the complement cascade centrally at C3, and preparation of a new drug application submission. The funds will also support the potential commercialization of APL-2, including the build-out of a commercial infrastructure and sales force, as well as to conduct research activities, repay in full the amount owed under a promissory note and for working capital and other general corporate purposes.
Bellus Health Inc., of Laval, Quebec, which is developing therapeutics for the treatment of chronic cough and other hypersensitization-related disorders, said the underwriters of its underwritten public offering of common shares have partially exercised their option to purchase additional common shares, resulting in the issuance of an additional 1.32 million shares at $7.10 each for additional gross proceeds of approximately $9.37 million. That brings the total gross proceeds of the offering to approximately $79.37 million. The company intends to use the net proceeds primarily to fund research and development activities, general and administrative expenses, working capital needs and other general corporate purposes.
IGM Biosciences Inc., of Mountain View, Calif., has increased the size of its proposed IPO and now plans to offer 10.93 million shares priced between $15 and $17 each. The company is developing engineered immunoglobulin M antibodies for the treatment of cancer. Its lead candidate, IGM-2323, is expected to enter phase I testing for the potential treatment of relapsed/refractory B-cell non-Hodgkin lymphoma this year. Its second candidate, for the treatment of patients with solid and hematologic malignancies, is progressing toward an IND filing next year. The company's shares will trade on Nasdaq under the symbol IGMS. (See BioWorld, Aug. 21, 2019.)
Linnaeus Therapeutics Inc., of Haddonfield, N.J., said it closed a $12 million series B financing led by Kairos Ventures with participation by the Penn Medicine Co-Investment Fund at the University of Pennsylvania. The company intends to use the proceeds to conduct its phase I/II trial of its lead compound, LNS-8801, in patients with advanced cancer.
Navrogen Inc., of Philadelphia, said it raised $3.2 million in a convertible note financing to support its humoral immuno-oncology (HIO) discovery platform and preclinical therapeutic pipeline activities. The financing was led by Ben Franklin Technology Partners of South Eastern Pennsylvania and several private investors. The use of proceeds, in addition to grant funding, will be used to expand the company's HIO-factor library and to support preclinical development activities around its therapeutic pipeline.