Biotechnology initial public offerings (IPS) are gaining momentum again as companies return to the public markets as market headwinds ease and demand for weight loss drugs increases.
on Monday (April 13) Reuters reportedObesity drug developer Calera Therapeutics and proteomics firm Alamar Biosciences officially launched their roadshow, with a combined valuation expected to be close to US$3 billion.
Calera is seeking a valuation of up to US$1.9 billion, marketing 33.3 million shares priced between US$14 and US$16. The company will be listed on Nasdaq under the symbol “KLRA”.
Alamar Biosciences, headquartered in Fremont, California, is meanwhile targeting a valuation of up to US$1.1 billion, offering about 9.4 million shares at a price of US$15 to US$17 to list under the ticker “ALMR.”
The aggressive pricing comes amid a resurgence in biotech equities.
The SPDR S&P Biotech ETF (ARCA:
While fears of war-induced inflation and subsequent rate hikes later this year remain, the immediate window has yielded a flurry of filings, including recent S-1 submissions from Seaport Therapeutics (NASDAQ:SPTX) and Hemab Therapeutics.
Calera’s high valuation target is based solely on its lead product candidate, ribupetide, a GLP-1/GIP receptor dual agonist that is positioned to compete in the highly lucrative weight loss market.
Industry analysts estimate that the obesity drug sector could generate approximately US$150 billion in annual sales within the next decade.
Calera has recently advanced its clinical advances. In February, the company and its partner, China-based Hengrui Pharma (SHA:600276) reported overwhelmingly positive topline data. phase 2 testing Formulation of an oral tablet of ribuptide.
In a 26-week study of 166 obese adults in China, participants receiving 25 mg and 50 mg doses of oral rebuptide achieved an average weight loss of 12.1 percent from baseline, with no stability in weight loss observed.
The oral tablet adds significant optionality to Calera’s pipeline. The company is advancing a once-weekly injectable version of ribupetide through a global Phase 3 kinetic clinical program.
While Calera targets the retail pharmaceutical market, Alamar Biosciences is taking advantage of demand for advanced diagnostic devices.
Alamar has developed highly specialized proteomics tools designed to detect low-level protein biomarkers in blood. The technology enables advanced disease research and early diagnosis, an area that has seen continued venture capital interest.
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Securities Disclosure: I, Gian Liguid, do not have any direct investment interest in any of the companies mentioned in this article.
