|Arvinas' CEO Houston puts nearly half a million dollars on the line in newly public company.|
NEW HAVEN: A city biotech based on technology of Yale researcher Craig Crews has taken to the public markets with an Initial Public Offering on September 27.
Arvinas, Inc. [Nasdaq: ARVN], the company’s CEO, Chairman and other key executives have made significant stock purchases in the open market.
Arvinas went public on September 27 at $16 per share, prices for the stock spiked as high as $21 nearly immediately. The stock however tracked back down and was trading under its offering price on October 8.
The company sold 7.5 million shares in the IPO, raising $120 million, the company has a current market value of approximately $475 million
In April while still a private company the company raised $55 million in a Series C financing for “development of drugs to address prostate and breast cancers.”
In January, Arvinas entered a license agreement and research collaboration with Pfizer Inc. [NYSE: PFE] potentially worth more than $830 million. The agreement is for the discovery and development of drug candidates using Arvinas' “proprietary” PROTAC (PROteolysis TArgeting Chimeras) Platform. The technology developed by Crews is what the company calls, “a novel technology used to create small molecule therapeutics aimed at degrading disease-causing cellular proteins.”
Crews was recognized by Business New Haven in 2014 as the Researcher of the Year, Healthcare Hero. Company Chairman Tim Shannon led the founding investment for the company, he was recognized as a 2014 Healthcare Hero, Person of Merit as well.
According to the business news site gurufocus.com Shannon was among the executives and directors that have recently bought shares in the company on October 1, four days after the IPO.
Shannon bought 4,000 shares and he and the others purchased at an average price $16 per share. The price of the stock has decreased by 2.19% since.
Company president and CEO John G. Houston purchased, 30,000 shares costing $480,000, CFO Sean Cassidy purchased 1,600 shares and State Senator and company director Edward Moore [Ted] Jr. Kennedy bought 21,000 shares. Company director Liam Ratcliffe Managing Director of VC, New Leaf Venture Partners also a private investor in the company bought 1,000,000 shares.