Biotech ProKidney LP will merge with a blank-check firm backed by veteran dealmaker Chamath Palihapitiya to go public in a deal valuing the combined entity at $2.64bn, the companies said on Tuesday.
The merger with Social Capital Suvretta Holdings Corp III 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 through an initial public offering (IPO) in July and a $575 million private investment in public equity, or PIPE.
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Investors in the PIPE include Palihapitiya’s Social Capital, Suvretta Capital’s healthcare-focused fund Averill and ProKidney’s existing shareholders.
ProKidney says its technology has the potential to treat chronic kidney diseases by using the patient’s own cells to restore organ function.
Often hailed as a “SPAC King”, Palihapitiya has sponsored some of the most high-profile blank-check deals including those for fintech SoFi Technologies Inc and home-selling platform Opendoor Technologies.
Source: Reuters
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