VC-backed Egalet raises $50.4m in IPO

The company's shares started trading on the stock exchange yesterday (6 February) under the ticker symbol "EGLT".

Egalet sold 4.2 million shares at a price of $12 apiece – above its initial plan to sell 3.5 million shares. The purchase of an additional 630,000 shares at the offering price has been granted to the underwriters as a 30-day over-allotment option.

The company's shares opened at a price of $12.5 on the first day of trading, but had dropped back to $12 at market close.

Stifel and JMP Securities were appointed joint book-running managers for the flotation, while Canaccord Genuity and Janney Montgomery Scott acted as co-managers.

The company is backed by several venture capital firms, namely 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.

Previous funding
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. 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 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.

Company
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.

People
Robert Radie is Egalet's president and CEO. The company'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
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• Index Ventures
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