Frazier SPAC Is in Talks to Merge With NewAmsterdam Pharma

(Bloomberg) -- NewAmsterdam Pharma BV, a biotechnology company that aims to treat metabolic diseases, is in talks to go public through a merger with blank-check firm Frazier Lifesciences Acquisition Corp., according to people with knowledge of the matter.

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Frazier, a Seattle-based special purpose acquisition company led by Chairman and Chief Executive Officer Jamie Topper, is in final discussions with investors for a private investment in public equity to support a transaction that’s set to value the combined entity at more than $700 million, said some of the people, all of whom requested anonymity as the talks are private. As with all transactions that have not been finalized, it’s possible talks could collapse.

Frazier Chief Financial Officer David Topper and a NewAmsterdam representative declined to comment.

Founded in 2019, Netherlands-based NewAmsterdam, led by CEO Michael Davidson, is backed by venture capital firm Forbion, Morningside Ventures and Ascendant BioCapital. The company said in January 2021 it had raised $196 million from those investors as well as others including Kaiser Foundation Hospitals, Peter Thiel and Janus Henderson Investors.

Last month, NewAmsterdam said it signed a license agreement with Italy-based Menarini Group to help deliver obicetrapib upon approval. The drug is in the clinical-trial phase. As part of the Menarini deal, NewAmsterdam received an upfront payment of €115 million ($118 million), as well as €27.5 million in research and development funding, for a total of €142.5 million. The Dutch biotech can receive another €863 million based on clinical, regulatory and commercial milestones, it said.

The Frazier SPAC raised $138 million in a December 2020 initial public offering. It’s affiliated with Frazier Healthcare Partners, a health-care and life sciences-focused investment firm.

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