Startup Behind AstraZeneca Covid-19 Vaccine Plans to File Publicly for U.S. IPO Within Days
April 07 2021 - 11:14AM
Dow Jones News
By Jenny Strasburg
LONDON -- The biotech startup behind the Covid-19 vaccine
jointly developed by AstraZeneca PLC and the University of Oxford
plans as soon as this week to file publicly to sell shares in the
U.S., according to people close to the company.
The Oxford startup, Vaccitech Ltd., has been aiming for a listed
valuation of around $700 million, with backers estimating it could
be a $1 billion company by year-end, The Wall Street Journal
reported last month. The company recently raised $168 million in
new funding in a big step toward a public share offering. That
financing valued Vaccitech at roughly five times its pre-pandemic
value of around $86 million, the Journal reported, citing people
close to the company.
Vaccitech is among a handful of once-obscure biotechs that have
found opportunity in the pandemic. Its co-founders are Oxford
scientists who led the development of the Covid-19 vaccine. The
university supported the company when it spun out in 2016, and some
Oxford backers hoped Vaccitech would list shares in London, but
Vaccitech executives insisted on Nasdaq in New York, the Journal
previously reported.
Vaccitech confidentially filed paperwork last year as groundwork
for a listing. The Financial Times earlier on Wednesday reported
the confidential listing. A number of investors in the recent
fundraising are expected to participate in the offering, according
to people familiar with the plans and marketing documents viewed by
the Journal.
Backers see the planned listing as potentially leading to one of
the biggest market debuts of an Oxford spinoff in years. But
investors have had concerns about the Covid-19 vaccine's rocky
rollout, the Journal has reported. Those concerns have continued
with questions about serious blood clots among a small number of
people who have received the Oxford-AstraZeneca vaccine. European
and U.K. regulators are investigating the rare but potentially
deadly clotting issues for any link to the shot. People close to
Vaccitech say perceptions of the vaccine were also tarnished by
confusion over U.S. clinical-trial results last month.
Vaccitech's relationship with Oxford also has been marred by
tensions over the company's role in the vaccine and the terms of
Oxford's AstraZeneca deal, according to people close to the company
and university.
Vaccitech plans to use technology underpinning the vaccine to
advance clinical trials for treatments targeting prostate cancer,
hepatitis B and human papillomavirus. A key part of that technology
uses an altered form of a chimpanzee cold virus to ferry genetic
material into the human body to boost the immune system and fight
infection.
Write to Jenny Strasburg at jenny.strasburg@wsj.com
(END) Dow Jones Newswires
April 07, 2021 10:59 ET (14:59 GMT)
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