Ocean Biomedical, a preclinical biotech developing therapies for cancer, infections, and other diseases, lowered the proposed deal size for its upcoming IPO on Friday.
The Providence, RI-based company now plans to raise $22 million by offering 2 million shares at a price range of $10 to $12. The company had most recently filed in July 2021 to offer 6.3 million shares at a range of $7 to $9. It originally planned to offer 3.2 million shares at a range of $14 to $17. At the midpoint of the revised range, Ocean Biomedical will raise -56% less in proceeds than previously anticipated and command a market value of $222 million (-23% vs. most recent terms). The Regents of the University of California has agreed to purchase $7 million worth of shares in a concurrent private placement, at a price per share equal to 90% of the offer price, and new and existing investors intend to purchase up to $25 million worth of shares in the offering (114% of the deal).
Ocean Biomedical seeks to bridge the "bench-to-bedside" gap by leveraging its strong relationships with research universities to license and develop technology to treat various diseases. The company is currently pursuing preclinical programs in oncology, fibrosis, infectious disease, and inflammation that have been licensed directly or indirectly from Brown University, Stanford University, and Rhode Island Hospital. Ocean Biomedical's preclinical pipeline includes various humanized monoclonal antibodies for the treatment of non-small cell lung cancer and glioblastoma multiforme, a small molecule for the treatment of Idiopathic Pulmonary Fibrosis, a malaria vaccine, and two malaria therapeutics. The company has also licensed Ang 1-7, a COVID-19 therapeutic for which licensor Stanford University has submitted an IND and expects to commence Phase 1/2 trials in the 1H22.
Ocean Biomedical was founded in 2019 and plans to list on the Nasdaq under the symbol OCEA. Roth Capital and JonesTrading are the joint bookrunners on the deal.
