VC-backed Egalet files $45.5m IPO

Egalet is backed by Index Ventures, Sunstone Capital, Enso Ventures, Atlas Venture and Omega Funds. The company has also received funding in the past from Vækstfonden Life Science Ventures, Bio Fund Management, Dansk Kapitalanlaeg, Danske Bank and QueQuion Holdings, according to unquote" data.

The company plans on selling 3.5 million shares of its common stock for $11-13 apiece, meaning it could raise between $38.5m and $45.5m in its IPO. The underwriters have also been granted the option to purchase an additional 525,000 shares within a 30-day notice.

The proposed IPO gives Egalet a market cap of $152.9-180.7m. The company's existing backers may collectively purchase up to $10m of stock in the IPO, according to Egalet's S-1 filing with the US Securities and Exchange Commission (SEC).

Egalet has appointed Stifel and JPM Securities to act as joint book-running managers for the IPO. The company plans on listing on the Nasdaq under the ticker symbol "EGLT".

According to Egalet's SEC filing, Atlas is currently the company's largest shareholder with a 22.9% stake. The firm is invested in the company via its Atlas Venture VII fund, which closed in June 2006 on $385m - just beneath its $400m target, according to unquote" data.

Omega Funds holds a 22.5% stake in Egalet via Danish Biotech SPV. Sunstone owns an 11.5% stake in the business, while Index has a 21.3% shareholding in Egalet via its Index Ventures III fund, which closed in February 2005 on its target of €300m.

Egalet last received funding in September 2013, in a $20m round led by Index.

Prior to September's round, Atlas, Index, Omega Funds and Sunstone injected $14.3m into the company alongside new investor CLS Capital, now known as Enso Ventures, in May 2012.

Egalet first received funding in October 2001 from Bio Fund Management, Dansk Kapitalanlaeg, Danske Bank and QueQuion Holdings. The firms invested approximately €14.4m, according to unquote" data.

The company then secured a further $27.6m in March 2006. The round was co-led by Atlas and Index, and saw previous investors Bio Fund, Dansk Kapitalanlaeg, Danske Bank and QueQuion participate.

In April 2007, Vækstfonden Life Science Ventures led a consortium of investors in a €14.5m funding round for Egalet, described as its series-B. All previous investors - Atlas, Bio Fund, Dansk Kapitalanlæg, Danske Bank, Index and QueQuoin - took part in the round.

Egalet was founded in 1995. The company is headquartered in London, with a US operations office in Malvern, Pennsylvania, and a research and development facility in Værløse, Denmark.

The company develops tamper-resistant opioids that are designed to prevent the abuse of pain medication. Egalet's two drug delivery systems, Egalet-001 and Egalet-002, are close to late-stage clinical testing. Both candidates will be tested as abuse-deterrent oral formulations of opioids.

Egalet's platforms are designed to deter pain medication abusers from being able to break down the drug's components and ultimately snort or inject the active opioid ingredient in the medication.

The company generated revenues of $1.2m in 2012, with an operating loss of around $5.3m. Robert Radie is the company's president and CEO.

Egalet's board of directors comprises Sunstone partner Andreas Segerros; Omega partner Renee Aguiar-Lucander; Enso partner Andrey Kozlov; and Atlas partner Jean-Francois Formela, who serves as the board's chairman.

Bio Fund senior partner Seppo Mäkinen, Atlas's Regina Hodits and Index's Francesco de Rubertis have all previously sat on Egalet's board of directors.

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• Topics
• Exits
• Healthcare
• UK / Ireland
• United Kingdom
• IPO
• NASDAQ
• Index Ventures
• Sunstone Capital A/S
• Atlas Venture