Venture capital-backed Zafgen secures $96m via IPO


obbVenture capital-backed biopharmaceutical company Zafgen, which specialises in the treatment of obesity, has raised $96m via its IPO on the Nasdaq exchange.

The company, which is backed by Alta Partners, Brookside Capital, RA Capital Management and Venrock, sold 6m shares at $16 apiece.

Zafgen has also granted underwriters including Leerink Partners, Cowen and Company, Canaccord Genuity and JMP Securities a 30-day option to buy up to a further 900,000 shares.

The company made its market debut yesterday, seeing its share price soar more than 30 per cent.

Last December Zafgen raised $45m in a Series E round not long after the Phase 2 study of its obesity therapeutic beloranib showed that it led to significant weight loss and improvements in multiple cardiometabolic risk factors in 147 obese patients.

One of Zafgen’s backers Venrock recently participated in medical device company PowerVision’s latest funding round.

Copyright © AltAssets 2014