A Look at Five Promising Biotech IPOs in 2024
The year 2024 has ushered in a new wave of excitement in the biotech industry, with several promising companies making their debuts on the stock market.
These initial public offerings (IPOs) represent not just financial milestones but also the fruition of years of research and development in various fields of biotechnology. Here are five biotech IPOs that are drawing attention in 2024:
Disclaimer: This post is not investment advice of any kind; it is for informational purposes only. The author of this post does not endorse or recommend any particular stocks or investment opportunities. Consult relevant professional service providers for any investment decisions at all times.
1. CG Oncology
CG Oncology, an innovative biotech company specializing in bladder cancer treatments, marked a significant milestone with its $380 million IPO in early 2024. This notable entrance into the public market was executed on the Nasdaq under the ticker symbol CGON, with the company offering 20 million shares at $19 each.
The hallmark of CG Oncology's innovation is its lead asset, the late-stage cretostimogene grenadenorepvec. This candidate represents an advance in oncolytic immunotherapy, a field that combines the destruction of cancer cells with an immune response against the tumor. The therapy works by infiltrating cancer cells, replicating inside them, and inducing cell death.
Subsequently, the newly formed cretostimogene grenadenorepvec molecules target and kill other cancer cells. In addition to this, cytokines and other antigens released by dying tumors help prime T-cells and recruit them to fight the malignancy.
Cretostimogene grenadenorepvec is specifically designed to replicate preferentially in cells where the retinoblastoma gene pathway is defective, a characteristic common in most urothelial carcinomas.
CG Oncology is developing this therapy for high-risk, BCG-unresponsive non-muscle invasive bladder cancer (NMIBC), as well as intermediate-risk NMIBC. It is currently in Phase III assessments for these conditions and also in a Phase II trial in combination with Merck’s Keytruda (pembrolizumab) for the treatment of high-risk, BCG-unresponsive NMIBC.
The $380 million haul from CG Oncology’s IPO, as reported by BioSpace on January 25, 2024, is a hint of the confidence investors have in the company's novel approach to bladder cancer treatment.
CG Oncology's Nasdaq debut sets a positive tone for the biotech IPO market in 2024.
2. Arrivent Biopharma
Arrivent Biopharma, a standout in the 2024 biotech IPO landscape, is expected to close a $135 million public offering. The Pennsylvania-based company, set to list on the Nasdaq under the ticker symbol "AVBP", has gained attention for its unique approach to drug development and its focus on non-small cell lung cancer (NSCLC).
The company specializes in in-licensing drugs developed in China and introducing them to Western markets. The company claims this approach not only accelerates the availability of novel treatments in different regions but also leverages the strengths of diverse pharmaceutical landscapes.
Arrivent's furmonertinib, an EGFR tyrosine kinase inhibitor developed for non-small cell lung cancer, is the leading asset. This drug received approval in China in 2021 for treating locally advanced or metastatic NSCLC.
What makes furmonertinib particularly notable is its breakthrough designation by the FDA for previously untreated, locally advanced, or metastatic non-squamous NSCLC with EGFR exon 20 insertion mutations. This designation highlights the drug's potential to address a critical need in lung cancer treatment.
The anticipation surrounding Arrivent Biopharma’s IPO is high, as reported by Fierce Biotech on January 22, 2024. The company plans to offer 8.3 million shares priced between $17 and $19, aiming to raise approximately $135.7 million.
These funds are for critical developments, including the FDA approval submission and potential commercial activities for furmonertinib, assuming the success of the ongoing Phase 3 FURVENT trial.
Moreover, Arrivent plans to invest in developing furmonertinib for patients with other NSCLC mutations, underscoring its plans to broaden the therapeutic's impact.
3. Metagenomi
Metagenomi, one of the promising biotech companies of 2024, has been making headlines for its anticipated entry into the public market.
On January 5, 2024, Metagenomi, a preclinical biotech company specializing in genome editing, filed with the SEC to raise up to $100 million through an initial public offering.
Metagenomi stands at the forefront of gene editing, a field that is rapidly evolving and holds immense potential for treating a variety of genetic disorders. The company's work is centered around developing next-generation gene editing tools, which are expected to offer more precision, efficiency, and safety compared to existing technologies. These advancements could have far-reaching implications in medicine, particularly in areas where current treatment options are limited.
The company, based in Emeryville, CA, aims to develop curative therapies using its proprietary metagenomics-derived genome editing tools. This toolbox includes advanced technologies like programmable nucleases, base editors, and RNA and DNA-mediated integration systems (including prime editing systems and CRISPR-associated transposases).
Metagenomi's achievements include analyzing over 460 trillion base pairs and predicting more than 7.4 billion proteins. This includes over 322 million CRISPR-associated proteins and over 1.75 million CRISPRs. The company focuses on developing therapies for various indications, particularly targeting liver, neuromuscular, and other organ areas, with all its product candidates currently in the preclinical stage.
4. Kyverna Therapeutics
Kyverna Therapeutics, listed among the early 2024 IPO hopefuls, is emerging as a notable player in the biotech industry, particularly in the field of immunotherapy.
The company, supported by Gilead, has not specified the anticipated share price or the total amount expected to be raised in its IPO. However, according to a recent SEC filing, it was revealed that the company's shares are slated to be listed on the Nasdaq, bearing the ticker symbol "KYTX."
The biotech plans to primarily utilize the funds raised from the IPO to progress the development of KYV-101 through clinical trials. This autologous CD19 CAR-T therapy, originally developed from research at the National Institutes of Health, is presently undergoing a phase 1/2 trial for lupus nephritis. Additionally, the company has obtained approval from the FDA to initiate further mid-stage studies targeting conditions such as multiple sclerosis and myasthenia gravis.
5. Fractyl Health
Fractyl Health, a company developing therapies for type 2 diabetes and obesity, has filed with the SEC to raise up to $100 million through an initial public offering in December 2023.
The company's lead product, the Revita DMR System, is an outpatient procedural therapy aimed at modifying duodenal dysfunction and is already approved in Europe for patients with inadequately controlled type 2 diabetes.
Fractyl Health is conducting a pivotal study of Revita, with topline data expected in the fourth quarter of 2024, and plans to initiate a clinical study for weight maintenance, aiming to submit relevant documents to the FDA in the first half of 2024.
Additionally, Fractyl is developing Rejuva, a pancreatic gene therapy platform using adeno-associated virus delivery, with plans to nominate its first candidate in the first quarter of 2024. The company presented data in October showing significant body fat reduction in a mouse model of type 2 diabetes treated with Rejuva, compared to results achieved with Novo Nordisk's semaglutide.
Founded in 2010, Fractyl Health plans to list on the Nasdaq under the symbol GUTS. This IPO filing comes amid a surge of interest in obesity medications, highlighted by the recent acquisition of Carmot Therapeutics by Roche Holdings AG after Carmot's own IPO filing.
Topic: Biotech Ventures
