Gastrointestinal disease-focused Phathom Pharmaceuticals Inc. set the price range of its IPO between $18 and $20 per share.
The Buffalo Grove, Ill.-based company was launched by Takeda Pharmaceutical Co. Ltd., which owns a 9.1% stake, and private equity firm Frazier Healthcare Partners, which has a 41.1% stake. The company focuses on therapies for the multibillion-dollar acid-reflux market in the U.S. and Europe. Frazier Healthcare Partners is a unit of Frazier Management LLC.
Phathom is offering 7.9 million common shares and expects to raise up to $136.8 million in net proceeds, assuming a per-share price of $19.
Goldman Sachs & Co. LLC, Jefferies LLC, Evercore Group LLC and Needham & Co. LLC are acting as the underwriters for the IPO. Phathom has granted the underwriters an option to buy up to an additional 1,185,000 shares, assuming they sell more than the 7.9 million shares in the IPO. The company expects to raise about $157.7 million in total net proceeds if the underwriters exercise their option in full, at an assumed price of $19 per share.
The company has applied to list its common stock on the Nasdaq Global Market under the symbol PHAT.
Phathom said in a filing that the main purpose of the IPO was to obtain capital to support operations, create a public market for its common stock and facilitate access to the public equity markets.
The company plans to use the net proceeds to fund the clinical development of vonoprazan — which was developed by the Japanese drugmaker Takeda and is approved in nine countries in Asia and Latin America. The medicine is used as a single therapy for gastroesophageal reflux disease and a combination treatment with antibiotics for infection caused by Helicobacter pylori bacteria.
Funds will also be used for working capital and general corporate purposes, including pre-commercial activities. The company may also use funds for acquisitions and investments, though it has no such commitments.
Phathom is led by co-founder David Socks, who serves as president, CEO, treasurer, secretary and director. As part of a planned transition, Socks will be succeeded by board member Terrie Curran as CEO. Curran, who is president of the global inflammation and immunology franchise at Celgene Corp., will take over the role following the closing of Bristol-Myers Squibb Co.'s acquisition of Celgene.
Phantom said Socks will be interim CFO and continue to serve as a board member following Curran's appointment as CEO.