Update: Instil Bio announced on March 23 that gross proceeds from the IPO were $ 368 million after subscribers exercised an option to purchase additional shares.
Dallas-based shares in Instil Bio Inc. rose 32% on Friday’s debut, generating $ 320 million for the biopharmaceutical company that develops cancer cell therapies.
Founded in 2018 and led by veteran investor Bronson Crouch, Instil Bio sold 16 million shares at $ 20 each as part of its initial offering. This emerges from documents filed with the US Securities and Exchange Commission on Friday. The company sold more shares than previously thought and at a higher price.
The stock traded on the Nasdaq under the ticker symbol TIL and closed at $ 26.44 on Friday.
TIL is the abbreviation for Instil Bios “Tumor-Infiltrating Lymphocytes” for the treatment of solid cancer tumors. Its lead candidate TIL is being developed for the treatment of advanced melanoma. The company, which raised $ 380 million from investors prior to going public on Friday, plans to seek Food and Drug Administration approval for human studies later this year.
Melanoma is the deadliest form of skin cancer. The National Cancer Institute estimated that more than 100,000 cases would be diagnosed in the U.S. and 6,850 people would die from them in 2020.
Crouch, 47, serves as the chief executive officer of Instil Bio and is the managing partner of Curative Ventures, a private equity firm that invests in biopharmaceuticals. Curative Ventures was one of the company’s earliest investors with a 34% pre-IPO stake.
Instil Bio’s 150 employees work at corporate headquarters in Dallas and manufacturing and cell therapy facilities in Manchester, England. A portion of the IPO proceeds will be used to develop a manufacturing facility in the Los Angeles area, which is expected to open this year.
The clinical stage company previously reported success with its lead drug in a compassionate use program at Christie Hospital in Manchester, the largest single-site cancer center in Europe. According to the company, TIL therapy resulted in complete remission in four of 21 patients and partial remission in ten others.
Instil Bio’s schedule includes applying for a commercial license for the drug through 2023. It also plans to start trials of TIL therapy for cancers other than melanoma.
According to MedCity News, California-based Iovance Biotherapeutics is hunting in the highly competitive field of cancer immunotherapy. Iovance’s TIL, Lifileucel, has become a pivotal phase 2 trial and the company expects to file for FDA approval for metastatic melanoma this year.