Investment Banking Spotlight: Formation of a Next-Generation Genetic Medicine Company
Our spotlight deal from across the industry is the formation of clinical stage genetic medicine and gene therapy company, Caritas Therapeutics, with expected ~$400M in initial funding. While SPAC IPOs have slowed, the merger activity reinforces the viability of SPACs as a tool for biotech companies to go public with substantial funding and investor support.
Amicus is merging its gene therapy business into Perceptive’s SPAC, ARYA Sciences Acquisition Corp IV, as part of an initiative to refine Amicus’ strategic focus as a late-stage and commercialization biotech for rare disease, to which the company now expects to be profitable by 2023. The business combination will form Caritas Therapeutics, a clinical-stage genetic medicine and gene therapy company targeting rare disease, at a pro forma equity value of $575M.