Now CRISPR/Cas9 IPO Revolution! Intellia Ready with $140M Plans
Intellia is setting plans to offer 6 million shares at a range of $16 to $18 in an IPO and plans to raise over $140 million from this IPO.
Intellia also hands a huge stock load to Regeneron and Novartis for $55 million. This IPO is focussed on Intellia’s CRISPR/cas9 and the company plans to trade an National Tax Lien Association (NTLA). Intellia describes its intentions to use the money as below:
- $25 million to further the research and development of its product candidates
- $15 million to advance additional in vivo and ex vivo product candidates in its pipeline
- $10 million to further development of the CRISPR/Cas9 gene editing platform and other delivery technologies
- The remainder for general corporate purposes and working capital
Regeneron and Novartis have been partners with Intellia and also backed it up at the time of its formation. Novartis got into partnership with Intellia on CAR-T work which uses the CRISPR/cas9 technology to exploit the therapeutic benefits of adaptive T cells on cancer. Novartis agreed to pay $50 million in an upfront payment and research fees for 5 years and also $230 million in milestone.
In the meantime Regeneron paid a $75 million upfront to partner with Intellia in the previous month. Insiders at the company are expected to play big roles in the IPO.
Intellia was founded in 2014 to develop the new and promising field of gene editing using CRISPR/Cas9 technology and has since then climbed steps of success towards achieving their ultimate goal of successful gene editing. Given to this huge publicity in the juvenile years itself, Intellia secured partnerships and investments from market players like Atlas Venture, Caribou Bioscience, EcoR1 capital, Fidelity Management and research company, Novartis and many more. Public market has shown similar interests in the company given to the promising future of CRISPR/Cas 9.
CRISPR/Cas9 has been everywhere since it’s birth and discovery by scientists at UC Berkeley. Gene editing is a precise method of modifying genetic material in human cells; the CRISPR/Cas9 system provides a new technique with considerable potential for precision. The system makes gene edits three different ways: repairs, knockouts and insertions.
CRISPR/Cas9 is being mentioned and published by scientists at a rate of 20 papers per week. Although the shares have gathered gains of about 106% since the public appearance, and this is a positive sign for the NTLA offering, but there are still certain factors that are holding investors back.
One of them being that there has been no han research of CRISPR/Cas 9. The National Institute of Health also recently states that they will not fund any use of gene editing technologies in han embryos given to safety and ethical issues and more due to the current lack of medical applications that would justify the use of this technology over the existing ones. According to the NTLA S-1 filing,
“For example, earlier gene therapy trials led to several well-publicized adverse events, including cases of leukemia and death. Serious adverse events in our clinical trials, or other clinical trials involving gene therapy or gene-editing products or our competitor’s products, even if not ultimately attributable to the relevant product candidates, and the resulting publicity could result in increased government regulation, unfavorable public perception, potential regulatory delays in the testing or approval of our product candidates, stricter labeling requirements for those product candidates that are approved and a decrease in demand for any such product candidate.”
People have often called this technology “the bubble technology” that can burst as soon as it is tested on humans. On the other hand MIT technology review calls it the “biggest biotech discovery of the century”.
So this upcoming IPO holds mixed opportunities for Intellia which shall be interesting and shall contribute a lot to the future of the company.