Weight-loss drug developer Metsera targets up to $1.78 billion valuation in US IPO (updated)

MBX Biosciences

27/01/2025 13:59

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      Metsera seeks to raise up to $292.2 million in US IPO
    

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      Venture capital firm ARCH Ventures founded Metsera in 2022
    

  
 (Adds analyst comment in paragraphs 3 & 4)
    By Prakhar Srivastava and Pritam Biswas
       Jan 27 (Reuters) - Metsera, which is developing weight-loss drugs, said on Monday it is
seeking a valuation of up to $1.78 billion in its U.S. IPO, aiming to capitalize on Wall
Street's insatiable appetite for such treatments. 
    Hopes of a soft landing for the U.S. economy and expectations of a more business-friendly
regulatory environment for deals and offerings under the Donald Trump administration have
spurred companies' interest in going public in 2025. 
    "In 2025, early signs have been encouraging — Metsera is one of 6 companies that announced
IPO plans in January," said William Pickering, senior analyst at Bernstein.
    "But we don't expect a dramatic uptick for the full year given continued high interest
rates," Pickering added and signaled companies' poor post-IPO performances in 2023 and 2024.
    Despite this, the global weight-loss drug market, expected to be worth about $150 billion by
the early 2030s, has drawn increased investor interest in companies targeting the fast-growing
segment.
    New York City-based Metsera is aiming to raise up to $292.2 million by offering 17.19
million shares, priced between $15 and $17 each.
    Biotech firms such as BioAge Labs  BIOA.O  and MBX Biosciences  MBX.O  were well received on
their respective debuts, but have lost ground to trade much lower than their IPO price, as of
Jan. 27. 
    Founded in 2022 by venture capital firm ARCH Venture and investment company Population
Health Partners, Metsera is developing injectable and oral drugs to treat obesity, based on the
GLP-1 mechanism and other biological targets.
    GLP-1 drugs, which help slow digestion and reduce hunger by triggering a feeling of
fullness, are now being studied to see if they can improve health in other ways too. 
    Metsera expects its shares will trade on the Nasdaq Global Market under the ticker symbol
"MTSR".
    BofA Securities, Goldman Sachs, Evercore ISI, Guggenheim Securities and Cantor are the
underwriters for the offering.

 (Reporting by Prakhar Srivastava and Pritam Biswas in Bengaluru; Editing by Anil D'Silva, Pooja
Desai and Alan Barona)
 ((Prakhar.srivastava2@thomsonreuters.com))