Intarcia Therapeutics has completed two financings with total proceeds of $210m, thought to be the largest sum raised by a private biotechnology company in the past 25 years.
The financings consisted of $160m from a preferred stock private placement and $50m from a private debt placement. Investors in these financings included existing investors New Enterprise Associates, New Leaf Venture Partners and Venrock, as well as new investors The Baupost Group, Farallon Capital Management, and three unnamed institutional investors based in Boston and New York.
As a result of these transactions, Intarcia has retained full strategic and financial control of its lead product candidate ITCA 650. The company intends to initiate the global Phase 3 programme for the product in the first quarter of 2013 with its strategic partner, biopharmaceutical service provider Quintiles.
“With this landmark financing in place, we have fully preserved the vision for our company and our aim to bring potentially revolutionary clinical, economic and humanistic benefits to millions of diabetes patients around the world,” said Kurt Graves, chairman, president and CEO of Intarcia.
The completed financing will also facilitate the previously announced move of Intarcia’s corporate headquarters to Boston, while keeping its early development capabilities and state-of-the-art manufacturing site at its current location in Hayward, California.
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