After announced its general plan for a Nasdaq IPO and also considering being merged into cash-heavy stock exchange shell Alcobra, Entera Bio has announced plans to raise $10 million at a company value of $94 million, fully diluted. The money raised will serve the company as a bridge, with the possibility of a later offering or another significant deal. Entera is developing a drug for treatment of osteoporosis and primary hypoparathyroidism (PHP).
The announcement was published by DNA Biomedical Solutions Ltd. (TASE: DNA), which holds 33% of Entera's shares. DNA Biomedical announced that it would invest $5 million in the round, and would own 30% of Entera following it. DNA Biomedical previously received a loan from Capital Point Ltd. (TASE:CPTP) in order to participate in this financing round. Following the investment and after giving Capital Point shares in Entera according to the agreement, DNA Biomedical will own 30% of Entera.
DNA Biomedical's share rose 8% yesterday, pushing its market cap up to NIS 50 million.
Other investors in Entera likely to take part in its financing round include the Pontifax fund and prominent figures associated with Kite Pharma, which recently had an enormous $12 billion exit. Possible investors include Kite Pharma founder and CEO and former Teva director Arie Belldegrun, TPG Capital founder and Kite Pharma director David Bonderman, and Kite Pharma director and Two River Group Holdings partner (together with Belldegrun) Joshua Kazam.
Entera's products are based on the company's technology, which facilitates oral administration of drugs that are usually injected. A phase II/III trial of a drug for treatment of PHP is scheduled to begin in the first quarter of 2018. The drug has been given orphan-drug status, meaning that it is designed to treat a rare disease for which there is currently no treatment, and is therefore entitled to an expedited trial route and protection from competition once it is approved.
Published by Globes [online], Israel Business News - www.globes-online.com - on September 13, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017