MBX Biosciences shares surge 44% in blockbuster Nasdaq debut (updated)

MBX Biosciences

13/09/2024 17:40

(Adds background in paragraphs 6-10, Zenas BioPharma debut in
paragraph 11)
       Sept 13 (Reuters) - Shares of MBX Biosciences  MBX.O ,
which is developing therapies that target endocrine and
metabolic disorders, including diabetes and obesity, jumped
nearly 44% in their Nasdaq debut on Friday.
    The upbeat debut underscores investors' growing focus on
weight-loss drugs after proving to be an effective obesity
treatment and showing potential to reduce stroke or heart attack
risks.
    The stock opened at $23 apiece, valuing the biotech firm at
about $694 million.
    MBX said on Thursday it had raised $163.2 million by selling
10.2 million shares at $16 apiece — the high-end of its targeted
range of $14 to $16 each — in its initial public offering. 
    The U.S. IPO market is on a route to recovery, albeit
uneven, after a two-year dry spell, on hopes of a possible rate
cut by the Federal Reserve and lower market volatility.
    MBX's success fares well for the IPO market that went into a
traditional summer lull following the debut of cold storage real
estate investment trust Lineage  LINE.O  in July, the biggest
this year.
    MBX's lead experimental candidate, MBX 2109, is being
developed to treat chronic hypoparathyroidism — a condition in
which the body produces insufficient levels of parathyroid
hormone that disrupts calcium levels in the blood and bones.
    The company is also developing MBX 4291, an experimental
therapy for the treatment of obesity. The therapy mimics the
effect of two gut hormones, GLP-1 and GIP.
    Eli Lilly's  LLY.N  tirzepatide, sold as Zepbound for weight
loss and Mounjaro for diabetes in the United States, also mimics
the function of these two gut hormones.
    Wall Street estimates annual global sales of $150 billion
for weight-loss drugs by the early 2030s. 
    Separately, Bristol-Myers Squibb-backed Zenas BioPharma also
debuted on the Nasdaq, with its shares rising nearly 8%.
    

 (Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by
Shilpi Majumdar)
 ((JaiveerSingh.Shekhawat@thomsonreuters.com;))