Cabaletta Bio and Phathom Pharmaceuticals Set for Nasdaq Debut on October 25

As October draws to a close, the Nasdaq market welcomes two more biotechnology companies: clinical-stage biotech firm Cabaletta Bio (CABA) and Phathom Pharmaceuticals (PHAT), whose product portfolio is in late-stage clinical development. These companies are based in Pennsylvania and Illinois, respectively, in the United States.

Cabaletta Bio (NASDAQ: CABA) plans to go public on October 25, 2019, Eastern Time, with an offering price of $14.00–$16.00 per share. The company will issue 5.8 million shares, raising $87 million, with Morgan Stanley, Cowen and Company, and Evercore Group serving as underwriters.

Phathom Pharmaceuticals(NASDAQ:PHAT)SimilarlyScheduled to list on the Nasdaq on October 25, 2019 (Eastern Time), with an offering price of $18.00–$20.00 per share, issuing 79,000 shares and raising $150 million. The underwriters are Goldman Sachs, Jefferies, and Evercore ISI.

Cabaletta Bio, Inc. (NASDAQ: CABA), founded in 2017, is dedicated to the discovery and development of engineered T-cell therapies for B cell-mediated autoimmune diseases and currently has 20 full-time employees.

Cabaletta Bio’s proprietary technology leverages chimeric autoantibody receptor (CAAR) T cells, which are engineered to selectively bind to and eliminate B cells that produce pathogenic autoantibodies (pathogenic B cells), while sparing normal B cells.

Cabaletta Bio’s leading CAAR T-cell product candidate is designed based on chimeric antigen receptor (CAR) T-cell technology, which has been successfully developed and marketed for the treatment of B-cell cancers.

Cabaletta Bio’s proprietary technology leverages chimeric autoantibody receptor (CAAR) T cells, which are engineered to selectively bind to and eliminate B cells that produce pathogenic autoantibodies (pathogenic B cells), while sparing normal B cells.

Cabaletta Bio’s lead CAAR T-cell product candidate is designed based on chimeric antigen receptor (CAR) T-cell technology, which has been successfully developed and commercialized for the treatment of B-cell cancers.

Over the past two years, Cabaletta Bio has discovered and developed four product candidates using its CABA platform, including its lead candidate (DSG3-CAART) for the treatment of patients with mucosal pemphigus vulgaris (mPV), as well as three additional candidates (DSG3/1-CAART, MuSK-CAART, and FVIII-CAART) that have demonstrated specific and selective activity in vitro.

To accelerate the product development of its key clinical programs and access a mature cell therapy manufacturing platform, Cabaletta Bio has partnered with the University of Pennsylvania (Penn) and entered into multiple agreements with the university to develop CAAR T-cell therapies for the treatment of these diseases.

The Company’s objective is to rapidly discover and develop its portfolio of CAAR T product candidates by leveraging the team’s expertise in autoimmunity and engineered T-cell therapies, as well as the Company’s collaboration with Penn.

On November 8, 2018, Cabaletta Bio closed its Series A financing round, raising $38 million led by 5AM Ventures, with participation from Adage Capital Management and Baker Brothers Advisors LLC.

On January 3, 2019, eight institutions, including 5AM Ventures, Redmile Group, Deerfield Capital Management, Adage Capital Management, and Baker Brothers Advisors LLC, invested $50 million in Cabaletta Bio during its Series B financing round.

Phathom Pharmaceuticals (NASDAQ: PHAT), founded in 2018, is dedicated to the development and commercialization of novel therapies for gastrointestinal (GI) disorders, and currently employs 16 full-time staff.

The company’s management is led by President, Chief Executive Officer, and Treasurer David Socks. Mr. Socks has been with the company since 2018 and previously co-founded Incline Therapeutics, where he served as President and Chief Operating Officer.

Due to the merger with YamadaCo IIA, the company was renamed Phathom Pharmaceuticals in 2019.

Phathom Pharmaceuticals’ lead candidate, “Vonoprazan,” is a potassium-competitive acid blocker that inhibits acid secretion by competitively blocking the action of potassium ions on H+/K+-ATPase, the key enzyme responsible for gastric acidification and activation of digestive enzymes.

Unlike traditional acid-suppressing drugs (such as proton pump inhibitors [PPIs]), vonoprazan exhibits a more prolonged duration of action, greater stability in acidic environments, and, due to its selective inhibition of only functionally active proton pumps, does not require multiple doses to achieve the desired therapeutic effect. It represents a potentially superior alternative to the current standard of care for the treatment of acid-related gastrointestinal disorders.

Vonoprazan, marketed under the brand name TAKECAB, was developed and commercialized by Takeda Pharmaceutical Company Limited (OTCPK: TKPHF, TYO: 4502) in Japan. It is indicated for patients with gastric ulcers, duodenal ulcers, or reflux esophagitis; for those undergoing Helicobacter pylori eradication therapy; and for the prevention of recurrence of gastric or duodenal ulcers in patients receiving low-dose aspirin or nonsteroidal anti-inflammatory drugs (NSAIDs).

Phathom Pharmaceuticals has been granted exclusive rights in the United States, Europe, and Canada for the late-stage clinical development of vonoprazan, a potassium-competitive acid blocker (P-CAB), for the treatment of acid-related disorders. The company plans to initiate Phase III clinical trials for the treatment of erosive GERD and Helicobacter pylori infection.

Phathom plans to initiate two pivotal Phase III clinical trials in the fourth quarter of 2019—one for the treatment of erosive GERD (also known as erosive esophagitis) and the other for the treatment of Helicobacter pylori infection—with top-line data from both trials expected to be released in 2021.

Management believes that the company can leverage Takeda Pharmaceutical’s clinical data, including results from 17 Phase III clinical trials, to enhance the competitive positioning of its drug candidates through pivotal trials conducted in the United States and Europe.

Vonoprazan has the potential to become the first gastric antisecretory agent in a new class approved in the United States, Europe, or Canada in more than 30 years.

On May 15, 2019, Phathom Pharmaceuticals secured $50 million in debt financing (exclusively invested by Silicon Valley Bank) and $90 million in venture round financing (led by Frazier Healthcare Partners, with participation from eight other institutions including Greenspring Associates, Abingworth, RA Capital Management, and Biotechnology Value Fund).

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