Merus (MSLI) is close to realizing its long awaited Nasdaq IPO worth $65 million. Currently, the cancer specialist has listed Novartis, Pfizer and Johnson and Johnson as companies leading the investments in the firm. The company’s IPO intends to bank on its current backers. Meanwhile, its current backers are reported to be interested in buying about half of the Nasdaq IPO.
During the course of the go-go month of 2015’s April, a Netherlands based subsidiary of Merus, Utrecht was the first to bring to the surface the idea of unveiling the Nasdaq IPO. But at that time, the initial targeted $100 million was less than the total amount of money that was proposed and that was being raised by other companies within the oncology industry. This includes companies such as Blueprint Medicines, Adaptimmune Therapeutics and Aduro Biotech. But, Merus had managed to turn the tables around by the time its plan to formalize its Nasdaq IPO was announced leaving several competitors wondering what had just happened.
In a private round of August of the year 2015, Merus had raised 72.8 million Euros, a feat which placed them on the right tract to beat their counterparts. Yet, the immuno-oncology participator has chosen to go back to its current investors to make sure it realizes its targets for this year. The firm has commitments from its anonymous existing investors to purchase $32.5 million of all the IPO shares it disposed of on Nasdaq. Bay City Capital, Venture Partners, Novo A/S, Aglaia Oncology Fund, LSP and Bay City Capital lie alongside the trio of the Big Pharma players (already indicated) on Meru’s main investor list with each organization being in ownership of 5 % of the shares.
As it stands, Merus needs an extra $2.2 million from its IPO shares. If it can find buyers to buy this remainder, it will earn proceeds worth $56.7 million before it exists the offering. It plans to divide the total proceeds evenly between its three strongholds. Leaders MCLA-128 are scheduled to take up to $17 million of the proceeds from the sale of the IPO shares. According to its targets, Merus intends to use the funds to facilitate the smooth running of its operations during the course of the Phase I/II clinical trials involving patients with HER2-exhibiting solid tumors. Although Merus expects top data within the 2nd half of next year, this target has fluctuated over the six months that have gone by.
Early this year in January, Merus had told its investors to be on the lookout for data which was scheduled to be released by the end of this year. Although the public has been advised to wait longer before it can have a full look at the data, it is already releasing snapshots of the data based on its progress. Its recent studies show that 12 of the 27 patients that had taken the MCLA-128 dose ended up experiencing an objective positive response, 11 of which were stable following the end of two treatment cycles.