On July 15, Artiva Biotherapeutics updated its IPO plan, announcing that it would sell 8.7 million shares at a price of $14-16 per share, expecting to obtain net proceeds of $116.8 million. Additionally, if the underwriters exercise their 30-day option to purchase 1.3 million shares at $15 per share, the net proceeds will increase to $135 million.
Source: Artiva Biotherapeutics, Inc. Prospectus
Artiva stated that the funds raised will be used to support the development of its allogeneic NK cell therapy, AlloNK, which is intended for the treatment of systemic lupus erythematosus (SLE) and is currently in Phase I clinical trials.Systemic lupus erythematosus is an autoimmune disease characterized by abnormal B-cell function, which can lead to organ damage and increased mortality. AlloNK therapy is also being used to treat other autoimmune diseases, including rheumatoid arthritis and pemphigus (a rare condition that causes blistering of the skin).
Artiva's Overall Pipeline (Source: Artiva Prospectus)
In fact, as early as 2021, Artiva, which had been established for only two years, had filed an IPO application, but 18 months later, Artiva withdrew its IPO.Also in 2021, Merck signed an exclusive global collaboration and license agreement with Artiva Biotherapeutics worth over $1.8 billion. Under the agreement, Merck will leverage Artiva's off-the-shelf allogeneic NK cell manufacturing platform and proprietary CAR-NK technology to develop novel CAR-NK cell therapies targeting antigens associated with solid tumors.According to a recent public document from Artiva Biotherapeutics, the collaboration with Merck ended in October 2023. Following the collapse of the partnership with Merck, Artiva recently announced its plan to seek a U.S. IPO to support the clinical development of its core pipeline, AlloNK.According to the prospectus, Artiva Biotherapeutics' total R&D expenses for the full year of 2023 were $50 million, and the R&D expenses for the first quarter of 2024 were approximately $11 million. As of the end of March this year, Artiva had approximately $62 million in cash, cash equivalents, and short-term investments. In terms of funding, Artiva is clearly already in a tight spot.With no commercialized products able to achieve self-sustainability, and the high-value collaboration with Merck already fallen through, Artiva Biotherapeutics’ pursuit of an IPO at this moment is undoubtedly a move of self-rescue.https://www.fiercebiotech.com/biotech/artiva-sets-out-135m-ipo-plans-push-nk-cell-therapy-through-trials
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