Innovacell Seeks $92M in Tokyo IPO to Advance Stem Cell Therapy Development
The company is developing autologous cell therapies for fecal and urinary incontinence tied to weakened sphincter muscles.
Key findings
- Innovacell is planning an IPO on the Tokyo Stock Exchange, aiming to raise about $92 million.
- The company is developing autologous cell therapies for fecal and urinary incontinence tied to weakened sphincter muscles.
- Proceeds are expected to fund a Phase III program (ICEF15), manufacturing and commercialization work, and additional pipeline programs.
Source – Bioxconomy interview.
Innovacell is preparing to go public in Tokyo, with an initial public offering (IPO) that it expects will raise about $92 million (14.17 billion yen) on the Tokyo Stock Exchange.
“For a company of our size, it is essential that our equity story resonates with the market where we list. Our clinical development has been concentrated in Europe and, more recently, Japan – where we are now operationally anchored – making Tokyo a natural fit,” Jason Sieger, co-CEO of Innovacell, told BioXconomy.
What Innovacell is developing
Innovacell is focused on autologous cell therapies (made from a patient’s own cells) for fecal and urinary incontinence caused by weakened sphincter muscles.
One lead candidate is ICEF15, described as an autologous skeletal myoblast treatment. ICEF15 is in Phase III clinical trials across Europe and Japan to assess efficacy and safety in fecal incontinence (EU CTIS: 2024-518243-38-00).
“Most other biotechs on the Tokyo Stock Exchange are focusing on indications that are more life-threatening,” Colin Novick, co-CEO of Innovacell, told us. “Innovacell is focusing on what is very much a quality-of-life issue. Because of the stigma attached to it, it doesn’t get talked about a lot. However, the number of adults in Japan who use diapers surpassed the number of children who use them in 2018. Incontinence is a real issue.”
The company previously raised $48 million (7.3 billion yen) in a Series D round to advance its multi-regional clinical trials, according to a company post (link).
Where the IPO proceeds may go
In its filing with the Japan Exchange Group (JPX), Innovacell says it intends to use proceeds to advance clinical development, manufacturing, and support commercialization of its “regenerative medicine products” (filing).
“The vast majority of the funding will be used to drive our multi-regional Phase III trial for our lead program, ICEF15, to completion. We will also use a portion of the funds to pay back the venture debt that we have from the European Investment Bank,” Novick shared. “Other funds will be used to further the development of our second program, ICES13, a cell therapy treatment for stress urinary incontinence. Also, the commencement of a first-in-human trial for our third program, ICEF16, a cell therapy treatment for passive fecal incontinence.”
Innovacell says it plans to expand after listing.
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