3 startups want to raise $400 million as IPOs grow in popularity in the US biotech industry

Although the IPO market has rebounded from last year’s lows, investors continue to support companies with an established business model. | Photo: Shutterstock

2 minutes of reading Last update: October 7, 2024 | 23:51 IST

Three health care startups are looking to raise up to $400 million in their U.S. initial public offerings, underscoring the sector’s strong rebound in 2024 after a two-year slump.

Dealogic data showed that September was the busiest month for healthcare IPOs this year. Strong debuts of companies such as BioAge Labs and Bicara Therapeutics also encouraged listings among other IPO candidates.

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Meanwhile, startups are looking to capitalize on the early part of a potential Federal Reserve interest rate cut cycle, even though uncertainty surrounding next month’s U.S. presidential election will likely make it more difficult to finance operations later this year. year.

“The company (Biotechs) may want to capture current market dynamics rather than wait for elections or economic indicators,” said Zara Muradali, national managing director of Grant Thornton’s life sciences industry division.

“As private equity and venture capital firms look for exits for their investments, there may be pressure on biotech companies to list sooner rather than later.”

Upstream Bio, a company that develops treatments for certain respiratory diseases, plans to raise up to $212.5 million. Kaiser Permanente-backed CAMP4 Therapeutics, which is working on therapies for a range of genetic diseases, is seeking $80 million.

CeriBell’s goal is up to $107.2 million. The company produces monitors for detecting neurological conditions and is supported by TPG’s The Rise Fund.

“A company with a product in clinical trials is mature and likely needed a significant amount of private capital to get there. Companies will try to take advantage of the market,” said Ross Carmel, partner at the law firm Sichenzia Ross Ference Karmel.

Although the IPO market has rebounded from last year’s lows, investors continue to support companies with an established business model and a clearer path to profitability.

Upstream is evaluating its lead product in a mid-stage trial, while its CAMP4 therapy is being evaluated in an early-stage trial. Both did not generate any sales revenues. CeriBell is already generating revenue.

All of them will be listed on the Nasdaq exchange, with Upstream trades marked with the symbol “UPB”, CAMP4 – “CAMP” and CeriBell – “CBLL”.

(Only the headline and image of this report may have been reworked by the Business Standard team; the rest of content is automatically generated from a syndicated feed.)

First publication: October 7, 2024 | 23:51 IST