Benzinga | Jan 19, 2022 03:57AM EST

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 (NASDAQ: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 (NASDAQ: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.