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Prometheus Biosciences Prices Upsized $190M IPO

NEW YORK – Prometheus Biosciences announced on Friday that it has priced its upsized initial public offering of 10 million shares of common stock at $19 per share.

The shares are expected to start trading on the Nasdaq on March 12 under ticker symbol RXDX. Prometheus expects gross proceeds from the offering, expected to close on March 16, to be $190 million.

SVB Leerink, Credit Suisse, Stifel, and Guggenheim Securities are the joint bookrunning managers for the offering. The firm is also granting the underwriters a 30-day option to buy up to an additional 1.5 million shares of common stock at the IPO price.

San Diego, California-based Prometheus is focused on developing and commercializing therapeutic and companion diagnostic products to treat inflammatory bowel disease. Its Prometheus360 platform uses machine learning and includes a database and biobank of gastrointestinal bioinformatics to identify novel therapeutic targets and develop therapeutic candidates for those targets. The database and biobank are exclusively licensed from Cedars-Sinai Medical Center and contain more than 200,000 samples of patients suffering from IBD and other GI issues.

According to its preliminary prospectus filed with the US Securities and Exchange Commission, the firm posted $1.2million in collaborative revenues in 2020 and had a net loss of $37.1 million, or $2.48 per share. It finished 2020 with $54.2 million in cash and cash equivalents.

The firm also develops companion diagnostic tests to determine if patients are more likely to respond to the therapeutic candidates. In 2019, Prometheus and Takeda Pharmaceutical entered a strategic collaboration to identify and validate three unique drug targets for IBD and develop and commercialize companion diagnostics for the targets. Under the agreement, Takeda is responsible for all drug discovery, clinical development, and commercialization activities for the resulting targeted therapies.

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