Oculis, an ophthalmic biopharmaceutical company developing new treatments for serious eye diseases, has announced a PIPE financing of approximately $80 million in conjunction with its planned listing on the NASDAQ stock exchange. The listing will be achieved through a merger between Oculis and the special purpose acquisition company (SPAC) European Biotech Acquisition Corp ("EBAC"), with the merger agreement between the two companies announced today. It is expected that once the merger between Oculis and EBAC is fully completed, which is projected for the first half of 2023, Oculis will have an enterprise value of approximately $220 million and a cash position of over $200 million, assuming no redemptions occur in EBAC.
Oculis traces its roots to the University of Iceland and Landspítali University Hospital, having been founded by Dr. Einar Stefánsson, Professor of Ophthalmology, and Dr. Þorsteinn Loftsson, Professor of Pharmaceutical Sciences. The company's most advanced drug candidate, OCS-01, is based on proprietary technology that enables the treatment of diseases in the back of the eye using eye drops. OCS-01 is currently in global Phase 3 clinical trials for the treatment of diabetic macular edema and could become the first eye drop treatment for diseases of the back of the eye.
The company's first venture capital funding (Series A) took place in 2016 and was led by Brunnur Ventures and Silfurberg. A turning point for Oculis occurred at the end of 2017 when three international venture capital firms invested in the company (Series B1). Following this, a parent company was established with headquarters in Switzerland. At the same time, the company's research activities were expanded, including new research facilities and an increase in staff in Iceland. Further venture capital rounds followed, with a Series B2 financing announced in early 2019 and a Series C financing in May 2021. To date, Oculis has raised a total of $110 million in funding for the research and development of new ophthalmic drugs.
The merger of the companies is expected to provide Oculis with over $200 million (assuming no redemptions). This includes a $127.5 million cash injection from EBAC funds (assuming no redemptions) and nearly $80 million through a private placement ("PIPE financing"), approximately a quarter of which comes from Icelandic investors, including pension funds, mutual funds, insurance companies, and other investment firms.
Key investors in the PIPE financing include LSP 7, one of Europe's largest biotech funds, Earlybird, Novartis Venture Fund, Pivotal bioVenture Partners, Tekla Capital Management LLC, and VI Partners, among others.
Arctica Finance acted as an advisor to EBAC in connection with the investment by Icelandic parties in the PIPE financing, while other advisors included Bank of America, SVB Securities, Credit Suisse, and Kempen. Legal advisors for the transaction were Cooley (UK) LLP, VISCHER SA, Davis Polk & Wardwell LLP, Stibbe N.V., Maples Group, Shearman & Sterling LLP, and BBA//Fjeldco.
