Goldman-backed drug developer Septerna targets $743 mln valuation in upsized US IPO (updated)

MBX Biosciences

24/10/2024 13:08

(Adds background on biotech sector in paragraphs 3-5 and
Septerna's lead drug in paragraphs 6-7)
       Oct 24 (Reuters) - Goldman Sachs-backed drug developer
Septerna said on Thursday it was seeking a valuation of $743.1
million in its upsized initial public offering in the United
States, a sign of upbeat investor sentiment for the
capital-intensive sector.
    Septerna, in which Goldman owns a 5.4% stake, now aims to
raise $275 million by selling nearly 15.3 million shares priced
at $18 apiece. It had earlier planned on selling about 10.9
million shares at a price range of $15 to $17 each.
    Drug developers have achieved resounding success in the fall
U.S. IPO market, with all the $100-million plus offerings since
September trading well above their issue price.
    All those offerings were also upsized as investors strongly
backed the stock market listings.
    Strong post-IPO performance by drug developers Bicara
Therapeutics  BCAX.O , MBX Biosciences  MBX.O , BioAge Labs
 BIOA.O  and Upstream Bio  UPB.O  are also encouraging potential
candidates in the sector to push ahead with their offerings.
    South San Francisco, California-based Septerna's lead
experimental candidate, SEP-786, is being developed to treat
hypoparathyroidism — a condition in which the body produces
insufficient levels of parathyroid hormone that disrupts calcium
levels in the blood and bones.
    SEP-786 is currently being tested in an early-stage study
and the company expects to report data from the trial in
mid-2025.
    J.P. Morgan, TD Cowen, Cantor and Wells Fargo Securities are
the underwriters for the offering.
    Septerna expects to list on the Nasdaq under the symbol
"SEPN".

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A glance at healthcare listings in the fall US IPO market    https://reut.rs/4hfQ94T
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 (Reporting by Arasu Kannagi Basil in Bengaluru; Editing by
Shailesh Kuber and Shilpi Majumdar)
 ((ArasuKannagi.Basil@thomsonreuters.com))