Bicara Leads Trio of US Biotech IPOs, Raising $703 Million Amid Sector Revival
On Thursday, the biotech sector saw a significant boost as three companies went public, collectively raising $703 million in initial public offerings (IPOs). This move comes as a positive sign for a sector that has recently faced challenges with new market entrants.
Bicara Therapeutics Inc. led the charge with a successful IPO, expanding its offering to sell 17.5 million shares at $18 each, at the top of its projected range. This upsized sale raised $315 million, reflecting strong investor interest. Bicara’s lead program focuses on a treatment targeting specific types of head and neck carcinomas. Following the IPO, entities affiliated with India’s Biocon Ltd. will hold a reduced stake of 11%, down from 16%.
MBX Biosciences Inc. also made headlines by raising $163.2 million in its debut. The company increased its share offering to 10.2 million shares, pricing them at $16 each, which was at the high end of its marketed range. MBX specializes in developing therapies for endocrine and metabolic disorders and has received backing from Frazier Life Sciences, New Enterprise Associates, and OrbiMed Advisors.
Zenas BioPharma Inc. completed its IPO by raising $224.4 million, pricing 13.2 million shares at $17 each, which was at the midpoint of its range. Zenas focuses on therapies for autoimmune diseases and aims to inhibit the activity of cells implicated in these conditions without depleting them. Following the offering, Bristol-Myers Squibb Co.’s ownership in Zenas will decrease to 3.7% from 5.3%.
These IPOs are seen as a potential turning point for the biotech sector, which has struggled with a series of disappointing public market debuts this year. Drug developers that raised over $10 million in US IPOs this year have faced challenges, with six out of eleven companies falling below their debut prices, according to Bloomberg data.
Despite a 25% increase in IPO proceeds for drug developers this year compared to the same period in 2023, much of this capital was raised in the early months of the year. Bicara and Zenas’s strong performances in their IPOs may indicate a renewed interest in early-stage drug developers, providing a hopeful outlook for the biotech industry.
Both Zenas and MBX will begin trading on the Nasdaq Global Select market under the ticker symbols ZBIO and MBX, respectively. Bicara will be listed on the Nasdaq Global Market with the symbol BCAX.