Denali Therapeutics Raises $250 Million in the Year’s Largest Biotech IPO

Denali Therapeutics (Nasdaq: DNLI) began trading today after raising $250 million at a post-money valuation of $1.58 billion, making it the largest biotechnology IPO of 2017. If the full shoe were to be exercised, that would bring gross proceeds to over $287 million. The stock is trading above $22 midday as we approach the weekend.

The company is developing therapies to treat neurodegenerative disorders, with lead candidates in the clinic targeting Parkinson’s disease, Alzheimer’s disease and amyotrophic lateral sclerosis (ALS) or Lou Gehrig’s disease.

Source: Denali Therapeutics

Denali is led by a group of neuroscience specialists who had worked together at Genentech, now part of Roche (OTCQX: RHHBY), for many years.

• Co-Founder and Chief Executive Officer, Ryan J. Watts, Ph.D., is a world-leading drug developer and neuroscientist, with particular expertise in blood-brain barrier (BBB) therapeutic delivery. Dr. Watts most recently led the neuroscience research team at Genentech and has led multiple discovery teams, including programs in Alzheimer’s disease, Parkinson’s disease and ALS.
• Co-Founder and Chief Operating Officer, Alexander O. Schuth, M.D., held various operational and leadership roles at Genentech for nearly ten years, including leading the partnering groups for neuroscience as well as technology innovation and diagnostics. Dr. Schuth has led more than 35 partnering transactions and a clinical stage development program.
• Co-Founder and director, Marc Tessier-Lavigne, Ph.D., is a world-leading neuroscientist, was formerly Chief Scientific Officer at Genentech and serves as President of Stanford University.
• Chief Medical Officer, Carole Ho, M.D., brings over a decade of clinical development experience, most recently as Vice President, Non-Oncology Early Clinical Development at Genentech. Dr. Ho has overseen or contributed to more than ten IND filings and three drug approvals.
• Chief Financial Officer, Steve E. Krognes, brings over two decades of operational and corporate finance experience, most recently serving six years as Chief Financial Officer and member of the Executive Committee at Genentech. Mr. Krognes has led more than 40 strategic deals and led or contributed to several capital raising transactions.

Regular readers know that we have a personal interest in seeing neurodegenerative therapy companies succeed wildly. While our optimism is always laced with caution, given that the FDA hasn’t approved a new Alzheimer’s therapy in 14 years, we’re encouraged that this team of experts is working together to advance Denali’s clinical program.

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