Orchard Therapeutics Ltd. expects to raise up to $172.5 million in its IPO of American depositary shares.
The U.K.-based biotech — in which GlaxoSmithKline PLC has 17.9% stake — plans to list on the Nasdaq Global Market under the symbol ORTX.
Underwriters have a 30-day option to buy additional ADSs.
Orchard Therapeutics filed the registration statement with the SEC under the name of Orchard Rx Ltd. Before the offering is completed, Orchard Therapeutics Ltd. will become a wholly owned subsidiary of Orchard Rx Ltd. and subsequently Orchard Rx Ltd. will be re-registered as a public limited company and renamed as Orchard Therapeutics PLC.
Net proceeds from the offering will go toward developing Orchard Therapeutics' lead product candidates and EU commercialization of Strimvelis — the gene therapy for "bubble baby syndrome" it acquired from GlaxoSmithKline.
Two of the the company's three lead clinical programs were part of GlaxoSmithKline's transferred portfolio: OTL-101 to treat a metabolic disorder called adenosine deaminase severe combined immunodeficiency, OTL-200 to treat accumulation of fats in certain cells in the nervous system, known as metachromatic leukodystrophy and OTL-103 to treat Wiskott–Aldrich syndrome.
Funds will also be used on Orchard Therapeutics' marketing and sales infrastructure, as well as the creation of its own manufacturing facility. Remaining proceeds will go toward ongoing business development activities, general and administrative expenses, working capital and other general corporate purposes.
J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and Cowen and Co. LLC are acting as joint book-running managers for the IPO, with Wedbush Securities Inc. also as an underwriter.
Orchard Therapeutics develops gene therapies for rare immune deficiencies, metabolic diseases and blood disorders. The company previously raised $150 million in an oversubscribed series C financing.