Biotech IPOs Roar Back to Life: RayzeBio and Neumora’s Combined $560M Triumph Signals a Resurgence!
In a thrilling twist for the world of initial public offerings (IPOs), the biotech market is sizzling once again. RayzeBio, with its radiopharma focus, and Neumora Therapeutics, championing neuroscience, have set the stage ablaze with their IPO announcements, raking in a staggering total of over $560 million.
RayzeBio boldly priced its 17.2 million shares at $18 each, commanding a formidable $311 million valuation. Meanwhile, Neumora unleashed its offering of 14.7 million shares at $17 per share, notching up an impressive $250 million.
This reawakening of biotech IPOs is a much-awaited resurgence. In 2021, a whopping 111 biotech companies, spanning from pre-clinical to early-stage, took the plunge into the public domain, setting a record that left the industry abuzz. However, this fervor witnessed a temporary lull in 2022 and early 2023, with just 21 biotech and pharma companies finding their way to the NASDAQ.
Fast forward to 2023, and the scene is changing once again. So far, 16 companies have gone public, including the dynamic duo of RayzeBio and Neumora. Leading the charge is Acelyrin, boasting a colossal $540 million IPO, while RayzeBio stands proudly in second place in terms of total proceeds.
RayzeBio and Neumora are no ordinary contenders; both are in the midst of Phase III trials. RayzeBio kicked off ACTION-1 in late May, pitting its radiopharmaceutical therapy against the standard of care for patients grappling with SSTR-positive gastroenteropancreatic neuroendocrine tumors. Skipping Phase II, they’re exuding confidence, even though efficacy updates from the Phase Ib trial are still pending. The Phase III finish line is projected for July 2025.
On the other hand, Neumora, under the stewardship of a new CEO, has propelled its major depressive disorder (MDD) treatment into Phase III glory this summer. This critical study targets moderate-to-severe MDD patients, where the kappa opioid receptor (KOR) antagonist promises the most impact. Following FDA recommendations, Neumora is embarking on three studies across three quarters, including an open-label extension for long-term safety. If the stars align, an NDA is poised for 2025.
Both RayzeBio and Neumora had already dazzled investors with substantial private investments. RayzeBio’s magnetism drew in over $400 million, while Neumora boasted a war chest of over $600 million, boasting big names like ARCH and Amgen among its backers.
This summer, biotech savant Chris Dokomajilar, the visionary behind DealForma Database, predicted a resurgence of IPOs in the second half of 2023. With this week’s electrifying announcements, it seems the sector is roaring back to life, promising an exhilarating journey ahead!