Orchard Therapeutics plans to go public to raise $172m

17-Oct-2018 - Last updated on 17-Oct-2018 at 10:59 GMT

(Image: Getty/stu99)

Orchard will launch an IPO on the Nasdaq Stock Market to raise $172m to fund research and development.

Orchard Therapeutics raised $150m (€129m) in a series C financing round in August of 2018 – with this latest fundraising, the company is looking to secure the investment required to build a manufacturing plant to produce Strimvielis, as well as financing the EU roll-out and commercialization of the product.

The gene therapy developer will raise funds through an initial public offering (IPO) to manage rising costs in R&D, which have increased from $10.5m to $127m from the six months ended June 30, between 2017 and 2018.

Orchard recently acquired GlaxoSmithKline’s (GSK) gene therapy portfolio, including its EU-approved drug candidate for adenosine deaminase severe combined immunodeficiency (ADA-SCID) – the fee paid, £10m ($13.1m), and additional R&D costs contributed to the increased expenditure, the company stated in filed documents to The Securities and Exchange Commission.

Strimvelis is an ex-vivo stem cell therapy treating ADA-SCID, which is an autosomal recessive metabolic disorder that causes severe immunodeficiency.

GSK holds a 17.9% stake in Orchard and royalties related to the gene therapy portfolio.

Orchard was unable to provide comment regarding the IPO.