Novavax Vaccine-Ingredient Supplier PolyPeptide Plans IPO

Novavax Inc. partner PolyPeptide Group AG plans an initial public offering on the Swiss Stock Exchange in the second quarter, giving public investors exposure to a company that supplies ingredients for a coronavirus vaccine candidate.

The contract manufacturer plans to float a 40% stake, with the placement to consist of both new and existing shares, it said in a statement Monday. The business could be valued at about 1.75 billion euros to 2.5 billion euros ($3 billion), though the amount could still change depending on investor demand, a person familiar with the matter said.

The company makes therapeutic peptides, or short strings of amino acids that are the building blocks of proteins, used by pharmaceutical and biotech companies including Covid-19 vaccine developer Novavax.

PolyPeptide is owned by Swedish billionaire Frederik Paulsen, who is also chairman of drugmaker Ferring Group, which is focused on reproductive medicine and women’s health.

PolyPeptide reported revenue of 223 million euros and adjusted earnings of 62 million euros for 2020. The company expects to use the IPO proceeds to fund capital expenditure and expansion into adjacent areas such as oligonucleotides, which are short DNA or RNA molecules, and neoantigen, or mutated cancer protein, therapies.

Credit Suisse Group AG, Morgan Stanley and Bank of America Corp. are joint global coordinators for the planned offering. Berenberg, Danske Bank A/S and Zuercher Kantonalbank are joint bookrunners. Rothschild & Co. is the independent financial adviser to PolyPeptide.

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