Kite pharma investor presentation series#

Juno’s public follow-on financing only 5 months ago raised a additional $250M. Juno then struck a deal with Celgene ($CELG), where the latter purchased 9% of the company for $93/share, raising $850M in equity financing.

Kite pharma investor presentation series#

In Dec 2014, Juno went public, raising $264M, at $24/share, or a 6x from the Series A. Over two years, Juno raised $314M as a private company. Juno Therapeutics ($JUNO) raised a large $180M Series A in 2013 at $4.00/share, following in 2014 by a $130M Series B round at $10.92/share (or a 2.7x step-up). In total, Kite raised $1.0B in equity capital over its lifetime. After their $128M IPO financing in 2014, Kite raised $830M in a series of follow-on public financings at steady price increases, and was acquired by Gilead ($GILD) in August for $180/share or $11B in value. So Kite technically raised $85M as a private company (though mezz was only a few months pre-IPO). A pre-IPO mezz round of $50M was raised as a convertible into the IPO price, coming in at a 10% discount to the $17.00/share IPO in 2014 (i.e., a 8.3x into the mezz round, and a 9.2x into the IPO). Kite Pharma ($KITE) raised convertible seed rounds in 2011, which converted at a 15% discount in the spring of 2013 into their Series A – which was (inclusive of the seed notes) a total of $35M at $1.85/share. To get into the details, here’s two charts that capture the share price changes over time, derived from their SEC findings, as best as I could dissect (so apologies now if I’ve got some of these wrong). Early investors (like David Bonderman of TPG and Alta Partners in Kite Pharma, and ARCH in Juno) made huge multiples and enormous absolute returns. They both are in the top 2% of venture capital outcomes.

Hopefully these deals will catalyze a renewed enthusiasm for M&A that was lacking in most of 2017.īut instead of adding further to that dialogue, I’d like to share a short post on the investor returns from these two fantastic outcomes.īoth of these deals led to massive returns to private and public investors alike. There’s plenty of commentary of these acquisitions elsehere, including why they are good for both the acquiree and the acquired, and what they mean for advancing CART to more patients and the biotech industry as a whole. And while many may reflect on their differences, the reality is they are quite similar: lead programs targeting CD19 in ALL/NHL, robust pipeline/platforms, strong cell manufacturing capabilities, stellar teams, and large cash balances ($700-900M at time of acquisition). Both biotech firms, along with Novartis, have pioneered the field of chimeric antigen receptor T-cell therapy, or CART, and have built the leading platforms in the space.

With only a few hundred patients ever treated with their therapies, $20B represents a lot of promise in both their lead products and the space itself. Yesterday Celgene finalized its acquisition of Juno Therapeutics for $9B, only a few short months after Gilead bought Kite Pharma for $11.9B.