LONDON: RTW Biotech Opportunities Ltd., a London-listed investment company, announced Wednesday that its portfolio company, Evommune Inc., has completed a $150 million initial public offering on the New York Stock Exchange.
The clinical-stage biotechnology company, which is developing therapies for chronic inflammatory diseases, priced its IPO at $16 per share, selling 9.4 million shares. Evommune began trading Tuesday under the ticker symbol “EVMN.”
The IPO price represented a 22% increase over RTW’s prior holding value for the investment and a 102% step-up from its original cost. On its first day of trading, Evommune’s stock rose 26% to close at $20.23 per share, according to a statement.
As of Sept. 30, Evommune represented 1.04% of RTW’s net asset value.
Based in Palo Alto, California, Evommune is focused on developing innovative treatments for autoimmune conditions. The company has two experimental medicines in Phase 2 clinical trials. Its lead program, EVO756, is being tested for chronic spontaneous urticaria and atopic dermatitis.
“We are excited to see Evommune reach this significant milestone, which we believe will further accelerate its mission to improve patient outcomes and advance novel therapies,” said Rod Wong, chief investment officer of RTW Investments, the company’s investment manager.
Wong added that the successful public offering “demonstrates the latent value potential in our private portfolio.”
RTW Biotech Opportunities Ltd. identifies and invests in transformative assets within the life sciences sector.