Delaware Money Moves: Prelude, AstraZeneca strike deals

Life sciences is in the spotlight this month as two prominent Delaware companies — one a burgeoning startup, one an established multinational pharmaceutical and biotech company — have closed major deals. We also saw moves in manufacturing, financial planning and healthcare.

A private placement deal for Prelude Therapeutics

Prelude Therapeutics, one of Delaware’s fastest-growing life sciences companies, closed a $25 million private placement that is expected to fund the company’s operations through 2026.

The publicly traded clinical-stage precision oncology company set terms with investors that include an agreement to purchase pre-funded warrants of 7,936,759 shares of Prelude’s common stock. So far, it’s raised $147 million in four rounds since its 2016 founding.

“This additional funding allows us to further resource our SMARCA2 portfolio by rigorously advancing the clinical development of our IV molecule, PRT3789, and progressing the oral program into the clinic,” said Dr. Kris Vaddi, CEO of Prelude, in a press release. “We look forward to providing initial clinical results from PRT3789 and initiating clinical development of our oral program in the second half of 2024.”

AstraZeneca acquires Icosavax

AstraZeneca, a British-Swiss pharmaceutical company with its US headquarters in Wilmington, is acquiring Icosavax, Inc,. a clinical-stage biopharmaceutical company from Seattle that focuses on developing respiratory syncytial virus vaccines. The total equity value of the deal is potentially $1.1 billion.

“The upfront cash portion of the consideration represents an equity value of approximately $838 million and a 43% premium over Icosavax’s closing market price on December 11, 2023, and a 73% premium to Icosavax’s volume-weighted average price for the preceding 60 trading days,” Icosavax’s announcement read. “Combined, the upfront and maximum potential contingent value payments represent, if achieved, an equity value of approximately $1.1 billion and a 91% premium over Icosavax’s closing market price on December 11, 2023, and a 130% premium to Icosavax’s volume-weighted average price for the preceding 60 trading.”

Simply put, the value at the time of the deal is $838 million but may increase to up to $1.1 billion if Isovax achieves its performance goals.

More money moves:

• The Wilmington-based High-Tech Machine Company Inc. has received Delaware’s first Modernization Investment Support Initiative Grant. It was approved for up to $219,525 in funding for use toward making over $1 million in necessary equipment upgrades, as well as maintaining its 17 full-time employees.
• Wilmington-based registered investment advisor (RIA) firm Daniels + Tansey has been acquired by Kansas-headquartered RIA Creative Planning. Before the acquisition, Citywire had named the firm the fastest-growing RIA in Delaware.
• Elizabeth W. Snyder, the daughter of Gore founders Bill and Genevieve Gore, donated $6.75 million to Nemours Children’s Health, Delaware Valley. This funding allows the healthcare provider to add two endowed nationally recognized orthopedic surgeons and develop enhanced programming for patients.