Weight loss pill stays private: Gelesis withdraws $52 million IPO

Gelesis, which is developing a weight loss capsule for patients with obesity and type 2 diabetes, withdrew its plans for an initial public offering on Thursday citing market conditions. 

In May 2015, the company had planned to raise $52 million by offering 4.0 million shares at $12-$14 beforepostponing the IPO. Insiders had planned to buy up to 34% of the deal.

News broke on Friday morning that Gelesis raised $31.5 million from new institutional investors including Cormorant Asset Management, joined by current investors PureTech, Invesco and Priztker/Vlock Family Office. It plans to use the proceeds to complete its six-month pivotal trial for Gelesis100 weight-loss pill with results expected in the 1H17.

The Boston, MA-based company was founded in 2006 and had planned to list on the Nasdaq under the symbol GLSS. Piper Jaffray, Stifel, and Guggenheim Securities were listed as as joint bookrunners on the IPO filing.