A portfolio company of Chen’s and a SPAC that Stout is CIO of file to go public and other news from Nasdaq and the Toronto Stock Exchange this week

From our Women's PE Briefs - week commencing April 5, 2021

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A portfolio company of Chen’s Cormorant Asset Management files to go public

A company that Bihua Chen’s Cormorant Asset Management backed roughly six months ago has filed to go public. Rain Therapeutics, Inc. is seeking to raise $100 million and list on Nasdaq under the symbol RAIN.

Based in Newark, Calif. Rain is developing targeted therapies for patients with cancer. The company’s pipeline includes a small molecule MDM2 inhibitor licensed from Daiichi Sankyo Company, Limited. Rain’s board includes Stefani Wolff, who was previously chief development officer at Principia Biopharma, Inc.

Cormorant took part in Rain’s $63 million Series B round that was announced last September. According to the filing, Cormorant owns 12.5 percent of the company prior to the offering. BVF Partners is the largest shareholder with a 21.4 percent pre-IPO stake. Boxer Capital holds 16.7 percent while Perceptive Advisors has 10.7 percent.

Cormorant now has at least three companies in registration. The others are VectivBio Holding and Biomea Fusion. Cormorant has also had at least four companies go public in 2021: Design Therapeutics, Edgewise Therapeutics, Prometheus Biosciences, Inc. and Pharvaris, which Anne Lesage co-founded.

Chif’s Dialogue goes public

Dialogue Health Technologies, Inc., which was co-founded by Anna Chif, has gone public. The Montreal-based virtual health care and wellness platform raised approximately 100 million Canadian by pricing 8.3 million shares at 12 Canadian. Dialogue is trading on the Toronto Stock Exchange under the symbol CARE.

Anna, who is chief product officer, founded Dialogue in 2016 with Cherif Habib who is CEO, and Alexis Smirnov, who is chief technology officer. The company provides affordable, on-demand access to quality care. It has created an app that provides access to services 24 hours a day from a smartphone, computer or tablet.

PowerSchool files to go public

PowerSchool Holdings, whose board includes Vista Equity Partners Betty Hung, files to go public. The Folsom, Calif. company is seeking to raise $100 million and list on the New York Stock Exchange under the symbol PWSC. IPO tracker Renaissance Capital, however, estimates the company could raise an estimated $750 million.

PowerSchool provides an education platform for teachers to collect work, grade and manage classroom activity. It serves more than 12,000 customers, including 93 of the top 100 top districts by student enrollment in the United States. In 2020, it generated $435 million in revenue.

Vista acquired PowerSchool in 2015 from Pearson for $350 million. Founded in 1997, the company at one point was owned by Apple. In 2018, Vista merged PowerSchool with another of its portfolio companies, PeopleAdmin, and brought in Onex Corp as an investor. The transaction reportedly valued PowerSchool at nearly $3 billion, according to published reports.

Betty, a managing director with Vista, is also on the boards of CentralSquare, Cvent, EAB, EagleView, Finastra, Infoblox, TIBCO and Xactly and also works with the firm’s investments in Advanced and Aptean. She has been with Vista since 2007 and is a past speaker at the Women’s Private Equity Summit.

PowerSchool’s board also includes Amy McIntosh, who is an independent education sector advisor.

LumiraDx agrees to merge with a SPAC

LumiraDx, whose board includes Dr. Lu Huang of Morningside and which recently filed to go public, has instead decided to go public via a merger with a special purpose acquisition company. A London-based provider of point-of-care diagnostics, LumiraDx has agreed to merge with CA Healthcare Acquisition Corp. The transaction gives LumiraDx an implied $5 billion valuation. CA Healthcare’s board includes Afsaneh Naimollah, who is an executive-in-residence at Plug & Play Tech Center and founder of XEN Partners.

LumiraDx has raised $700 million in equity since its founding in 2014. In addition to Morningside, LumiraDx has also received backing from North Atlantic Capital and the Bill & Melinda Gates Foundation. None of the current shareholders will sell their stock and will instead roll it into the new public company. For the first half of 2020, LumiraDx reported a $110 million net loss on revenue of $13 million.

LumiraDx has developed a high sensitivity antigen test for COVID-19 that is being used by CVS Health in the United States as well as elsewhere in Europe and Africa.

LumiraDx’s board also includes Lurene Joseph, who has been a consulting director with various organization on housing, regeneration and social economic development.

Dr. Lu Huang leads Morningside’s life science investment team in China. In 2019, another company on whose board she sits – Stealth BioTherapeutics – went public. Newton, Mass.-based Stealth BioTherapeutics’ CEO is Reenie McCarthy.

EcoR1 Capital’s Stout is CIO of a SPAC that goes public

Panacea Acquisition Corp. II, a special purpose acquisition company whose chief investment officer is EcoR1 Capital’s Caroline Stout, goes public – a SPAC whose board includes EcoR1 colleague Sarah Marriott and Canaan Partners’ Nina Kjellson. Panacea Acquisition II raised $150 million by offering 15 million shares at $10 a share. It is listed on Nasdaq under the symbol PANA. The SPAC will now look to merge with a private biotech company and, in turn, bring it public.

Caroline, a partner with EcoR1, has been with the life sciences focused firm since 2014 and has led several of its investments. She also served as chief investment officer of another EcoR1-connected SPAC, Panacea Acquisition Corp., which in February merged with Nuvation Bio.

Sarah who was also on the board of Panacea Acquisition Corp., is EcoR1’s chief operating officer and chief compliance officer. She has been with EcoR1 since 2014.

Nina, who has been with Canaan since 2015, is a general partner. Focused on therapeutics for serious and undeserved conditions, Nina is on the boards of PACT Pharma, Tizona Therapeutics, Trishula Therapeutics, Tyra Biosciences, Vineti and WellTok.

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