On Thursday November 16th, Orphazyme A/S (Orphazyme) initiated its first trading day on Nasdaq Copenhagen, Denmark. The IPO was several time oversubscribed at an initial price of DKK 80 per share raising 80M€. This gives Orphazyme a market capitalisation of DKK 1,594 million after completion of the Offering (excluding a 15% overallotment option).
Orphazyme is a Danish biotech company with a late stage orphan drug pipeline, developing new treatment options for orphan protein misfolding diseases. The Company was founded in 2009 based on early scientific discovery in heat shock proteins (“HSPs”). Since inception, the Company has translated scientific discovery into a late stage clinical development programme. The Company is headquartered in Copenhagen and currently has 30 employees. The Company focuses on severe and mostly fatal diseases with a high unmet need, and with a particularly strong commitment to neuromuscular diseases and a group of severe genetic diseases called lysosomal storage diseases. The Company plans to pursue development of its lead candidate through to registration in the EU and the United States after which launch and commercialization is expected to be undertaken by the Company. The lead candidate arimoclomol is in development as a potential treatment for four orphan diseases; two neuromuscular diseases, sporadic Inclusion Body Myositis (“sIBM”) and Amyotrophic Lateral Sclerosis (“ALS”), and two lysosomal storage diseases, Niemann Pick type C (“NPC”) and Gaucher disease.
Sunstone Capital acted as co-lead investor of Orphazyme series A financing in February 2011 through an investment from its Sunstone Life Science Fund II, and has participated in all subsequent financing rounds. Since the first investment, Sunstone has been represented on the Board by Sten Verland, senior partner, supporting the company in strategic and operational matters since then. Sten Verland will continue on the Board after the IPO. This transaction represents one of the more significant recent European biotechnology IPOs, and is a validation of Sunstone’s investment strategy as well as yet another example of an increasingly active and competitive European biotech industry.