Denali Closing Of Ipo

Denali closing of ipo

De­nali Ther­a­peu­tics’ team plans to break through a lot of bar­ri­ers in biotech — most no­tably look­ing to de­vel­op a drug for Alzheimer’s that ac­tu­al­ly works af­ter 15 years of fail­ure in the in­dus­try.

This week, they set­tled for break­ing the 2017 record for ini­tial mar­ket val­u­a­tion dur­ing a biotech IPO.

The South San Fran­cis­co-based biotech — based in Oys­ter Point close to Genen­tech, where sev­er­al of the ex­ec­u­tive team came from — raised $250 mil­lion af­ter pric­ing shares at $18, right in the mid­dle of the range.

Denali closing of ipo

And that gives the very ear­ly-stage biotech a mar­ket val­u­a­tion of $1.7 bil­lion, pass­ing a top mark that had been held by Abl­ynx, which start­ed out at $1.3 bil­lion.

De­nali, helmed by Ryan Watts, will trade as $DNLI.

The biotech was one of the dar­lings of the ven­ture com­mu­ni­ty, rais­ing $350 mil­lion while set­ting out to take a fresh ap­proach in neu­rode­gen­er­a­tion by go­ing af­ter tar­gets like RIP1, ApoE and LRRK2.

“This may sound like Drug 101,” CMO (and Genen­tech vet) Ca­r­ole Ho told me last year, but De­nali’s suc­cess af­ter so many fail­ures will get down to its abil­i­ty to en­gage the tar­get, with the right kind of bio­mark­ers in place to track their suc­cess.

De­vel­op­ing bio­mark­ers ear­ly, she adds, is crit­i­cal.

Investing in Initial Public Offerings (IPOs)

And the bi­ol­o­gy of these dis­eases is be­com­ing more clear through the rapid ad­vance of ge­net­ics re­search.

De­nali’s ar­rival on Nas­daq marks the 40th US biotech IPO of the year, out­strip­ping most of the ex­pert guess­es that the in­dus­try would re­peat or just edge out last year’s lean 28 biotech IPOs. And while it’s no re­peat of 2014, when Wall Street rarely failed to em­brace any biotech look­ing to go pub­lic, the sec­ond half of 2017 has seen a fast clip of new of­fer­ings.

Bruce Booth at At­las was par­tic­u­lar­ly im­pressed by the num­bers for a Phase I biotech.

Denali closing of ipo