Print“The debut of Movetis brings an end to a two year drought of IPOs by venture backed companies in Europe.”
Movetis raised its targeted $128 million (€85 million) in a successful initial public offering on the Euronext Brussels exchange. The financing was the first significant IPO in the European life sciences sector since early 2008 and the largest IPO in the Life Sciences sector on Euronext Brussels. The debut of Movetis brings an end to a two year drought of IPOs by venture backed companies in Europe. The last VC-backed European IPO was Belgian biotech Ablynx, which listed in November 2007.
Movetis issued 6.9 million shares at $18.20 (€12.25) per share, just below the middle of its indicated range, and began trading on Friday, December 4 under the ticker symbol "MOVE." Together with the existing shares, the number of outstanding shares (before the over-allotment option) amount to just under 20 million, representing a market capitalization of approximately $363.8 million (€244.9 million) based on the IPO price. If the over-allotment option of another 1 million shares is exercised in full, the total amount of the capital increase will amount to ($145 million) (€97.75 million.
The IPO was led by Credit Suisse and KBC Securities as Joint Global Coordinators and Joint Bookrunners. Piper Jaffray acted as Co-Manager.
Movetis is a European specialty pharmaceutical company focused on the discovery, development and commercialization of new drugs to treat diseases in the GI area with a high unmet medical need. The company was founded in Belgium in November 2006 as a spin-off of Johnson & Johnson. The company gained European Union approval for its lead compound Resolor in October 2009 for symptomatic treatment of chronic constipation in women in whom laxatives fail to provide adequate relief.
“Our ability to successfully complete the first significant size IPO in the European life sciences sector since early 2008 demonstrates investor confidence in the GI market, in Movetis’ strategy and in the potential of Resolor, and our strong portfolio of GI products," says Dirk Reyn, CEO of Movetis.
Movetis' venture investors include Sofinnova, Life Sciences Partners, GIMV, KBC, Biotech Fonds Vlaanderen, Quest for Grouth and BIP. Johnson & Johnson also has a stake in the company and has kept the marketing rights to Resolor in Asia and the United States.
Movetis expects to launch Resolor in Germany in the first half of 2010 followed by the UK, the Netherlands, France, Belgium and Luxembourg. In addition, the Company intends to seek one or more partnership deals in other markets of the European Economic Area, to ensure that Resolor reaches the large European population of female patients that visit their doctors for chronic constipation and are dissatisfied with their current laxative treatment.
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