Clementia Pharmaceuticals upsizes IPO to US $120M

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By Ted Liu

Clementia Pharmaceuticals Inc. (NASDAQ: CMTA), a clinical stage biopharmaceutical company, has priced its initial public offering (IPO). The company will issue 8,000,000 common shares at US $15.00 per share for gross proceeds of US $120 million (all $ figures in US dollars).

Clementia Pharmaceuticals has proposed to sell 7,150,000 of its common shares at price per share between $13.00 and $15.00.

Clementia Pharmaceuticals shares are expected to begin trading on The NASDAQ Global Select Market on August 2, 2017 under the ticker symbol “CMTA”.

Clementia has granted the underwriters a 30-day option to purchase up to an additional 1,200,000 common shares at the initial public offering price. The offering is expected to close on August 7, 2017.

Morgan Stanley & Co. LLC and Leerink Partners LLC are acting as book-running managers for the offering. Wedbush Securities Inc. and BTIG, LLC are acting as co-managers for the offering. Jenner & Block LLP and Ropes & Gray LLP act as legal counsels to Clementia and underwriters respectively.

Founded in 2010, Clementia Pharmaceuticals has raised $102.8 million in three rounds of financing from OrbiMed Advisors, LLC, BDC Capital, New Enterprise Associates (NEA), Janus Global Life Sciences Fund, RA Capital Healthcare Fund, L.P., UCB BioPharma, Rock Springs Capital Master Fund LP, EcoR1 Capital, Leerink Holdings LLC, Fonds des solidarité FTQ, and private investors.

OrbiMed, BDC Capital and NEA collectively control 73.2% of pre-IPO shares while management and directors own 10.6% of the pre-IPO shares.

Immediately following the closing of the IPO, OrbiMed, BDC Capital and NEA will collectively own 55% of Clementia outstanding shares or 53% if the over-allotment were exercised in full.

At IPO price, OrbiMed, BDC Capital and NEA stakes worth approximately $265.5 million, comparing investment costs of approximately $72.5 million.

Montreal based Clementia is a clinical stage biopharmaceutical company committed to delivering treatments to people who have none. The company is developing its lead candidate palovarotene, a novel RARγ agonist, to treat Fibrodysplasia Ossificans Progressiva (FOP), Multiple Osteochondromas (MO), and other diseases.

photo credit: Clementia Pharmaceuticals