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Weight loss pill stays private: Gelesis withdraws $52 million IPO

Gelesis, which is developing a weight loss capsule for patients with obesity and type 2 diabetes, withdrew its plans for an initial public offering on Thursday citing market conditions.

In May 2015, the company had planned to raise $52 million by offering 4.0 million shares at $12-$14 beforepostponing the IPO. Insiders had planned to buy up to 34% of the deal.

News broke on Friday morning that Gelesis raised $31.5 million from new institutional investors including Cormorant Asset Management, joined by current investors PureTech, Invesco and Priztker/Vlock Family Office. It plans to use the proceeds to complete its six-month pivotal trial for Gelesis100 weight-loss pill with results expected in the 1H17.

The Boston, MA-based company was founded in 2006 and had planned to list on the Nasdaq under the symbol GLSS. Piper Jaffray, Stifel, and Guggenheim Securities were listed as as joint bookrunners on the IPO filing.

The article Weight loss pill stays private: Gelesis withdraws $52 million IPO originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital, the Renaissance IPO ETF (symbol: IPO) or the Global IPO Fund (symbol: IPOSX) , may have investments in securities of companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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