ProKidney Turns To Palihapitiya-Backed SPAC To Go Public In $2.6B Deal


ProKidney LP agreed to become a publicly-traded company via a business combination with Chamath Palihapitiya-backed special purpose acquisition company Social Capital Suvretta Holdings Corp III  DNAC in a deal valuing the combined entity at $2.64 billion.

  • ProKidney first made waves in 2019, when it disclosed the $62 million acquisition of inRegen and raised $75 million to fund the deal and another takeover.
  • ProKidney's management team is led by CEO Tim Bertram, and the board is led by chairman Pablo Legorreta, founder, and CEO of Royalty Pharma PLC RPRX.
  • The merger with the SPAC will hand ProKidney up to $825 million in gross proceeds to advance the development of its treatment for chronic kidney diseases.
  • The proceeds include the $250 million the blank-check firm raised and a $575 million private investment in public equity.
  • Chamath Palihapitiya's Social Capital is leading the investment with a $125 million commitment. Existing ProKidney investors are putting in $50 million, and Suvretta Capital's Averill strategy is adding $30 million.
  • The combined company will trade on the NASDAQ under "PROK."
  • Lead product candidate, REACT, can potentially slow, stabilize, and even reverse the decline in kidney function, delaying the onset of dialysis.
  • The Phase 3 program, initiated in January 2022, may enroll up to 1,500 participants, with primary analysis projected to occur in 2025.
  • Price Action: DNAC shares are trading higher by 0.11% at $9.85 on the last check Tuesday.
Market News and Data brought to you by Benzinga APIs
Posted In: BiotechNewsHealth CareFinancingOfferingsSmall CapIPOsGeneralBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!