The Princeton, N.J., biotech plans to raise up to $373.3 million by selling 23.3 million shares priced between $14 and $16 each
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Kardigan filed for a U.S. initial public offering targeting a valuation of up to $1.4 billion, the Princeton, New Jersey-based clinical-stage biotech said on Thursday. Its offering consists of 23.3 million shares in a $14-to-$16 price range, with gross proceeds potentially reaching $373.3 million.
If shares are sold at the midpoint price of $15, Kardigan expects to raise about $320.3 million after expenses. If underwriters buy an extra 3.5 million shares, that number could increase to around $369.1 million. In that case, the total number of shares would be just under 91.2 million, giving the company a market value of about $1.37 billion at the $15 price.
Kardigan is focusing on three late-stage cardiovascular programs: danicamtiv for genetic dilated cardiomyopathy, ataciguat for calcific aortic valve stenosis, and tonlamarsen, which is being tested for acute severe hypertension. With the money from the IPO and its current cash, the company expects to be funded through 2028.
Spending on research and development surged to $45.1 million in the first quarter, more than twice the year-ago figure, as clinical activity intensified across all three programs. Proceeds from the listing will be directed toward advancing the clinical trials for each of the three candidates, with the remainder allocated to research activities, working capital, and broader corporate needs.
Shares will trade on the Nasdaq $NDAQ Global Market with the symbol "KARD," with the offering managed by J.P. Morgan, Jefferies, Leerink Partners, and TD Cowen.
The offering arrives as the biotech IPO market shows signs of renewed activity. Parabilis Medicines, which raised $670 million in what Fierce Biotech called the largest IPO in biotech history, began trading on Nasdaq the day before Kardigan's announcement, with its stock rising on its first day. According to Reuters, IPOX Research Associate Lukas Muehlbauer noted that the sector's IPO window has reopened, though he warned against drawing comparisons to the 2020-2021 boom era, arguing that capital is flowing only to companies with demonstrated clinical momentum and a credible regulatory runway.
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