Clinical stage biomed company Entera Bio Ltd. is looking to raise $10 million towards a Nasdaq IPO for a market value of $97 million, according to a Tuesday filing at the Tel Aviv Stock Exchange.
Established in 2010 and headquartered in Jerusalem, Entera develops technology for the oral delivery of large molecule-based drugs, focusing on osteoporosis, bone disorders and orphan disease hypoparathyroidism.
Large molecule drugs, or biologics, are protein-based and have less side-effects than chemically produced small molecule drugs due to their ability to target specific cells. They cannot be given orally since they break down in the digestive tract.
DNA Biomedical Solutions Ltd., a holding company of which Entera is a portfolio company, pledged $5 million. Currently owning 36% of Entera shares, DNA Biomedical is planning stock dilution, after which the company will own 30% of Entera's shares. $3 million of that $5 million will be provided by Tel Aviv-based investment company Capital Point Ltd., chosen as an investor over pharma company Alcobra Ltd.
Entera submitted a draft prospectus as a confidential filing to the U.S. Securities and Exchange Commission on July 14. People familiar with the matter who spoke on conditions of anonymity said that the current funding round is a step towards a Nasdaq IPO, adding that Entera will use the money to further its clinical trials.
In July, Entera completed a $7.5 million venture. The round, led by Tel Aviv-based healthcare-focused venture capital firm Pontifax Ventures Capital, saw the participation of private investors such as Kite Pharma founder and CEO Arie Belldegrun and American-born billionaire David Bonderman.
Entera intended to IPO at Nasdaq in 2015 for a value of $160-200 million, but the biotech market dropped in August that year, closing the company's IPO window.