Fledgling biopharma companies are showing increased interest in going public. On Monday, the third such company in the past two weeks or so filed initial plans to list its shares. Life sciences specialist RA Capital Management is a major investor in each of the three companies.
The latest to announce its intention to go public is MBX Biosciences, a clinical-stage biopharmaceuticals company developing novel precision peptide therapies for endocrine and metabolic disorders. It plans to sell 8.5 million shares for between $14 and $16 per share, according to the filing. At the midpoint range, the company would raise $127.5 million.
Several hedge funds were major investors in the private company. OrbiMed Advisors owns 14.15 percent of the shares before the offering and may own more than 10 percent afterward. It has participated in at least three financings over the years, according to Crunchbase. Carl Gordon, a founding member, managing partner, and co-head of global private equity at OrbiMed, has served on the company’s board of directors since July 2020.
Deep Track Biotechnology Master Fund currently owns 9.33 percent of the shares and expects to have 6.7 percent after the company goes public. It previously participated in one financing round. And RA Capital owns 6.4 percent of the shares now and will have 4.6 percent after the IPO. It has previously participated in two financings.
Meanwhile, late last week, Bicara Therapeutics set terms for its upcoming IPO. The company, which focuses on transformative bifunctional therapies for patients with solid tumors, plans to offer 11.765 million shares for between $16 and $18 per share, according to an updated regulatory filing. At the midpoint, it would raise about $200 million.
RA Capital owns 15 percent of the shares before the IPO and may own 11.1 percent of the total afterward, per the updated filing. Other investment firms with at least 5 percent of the shares include Red Tree Venture Fund, Omega Fund VII, Invus Public Equities, and TPG LSI Rise Butterfly.
About two weeks ago, Institutional Investor reported the IPO filing of BioAge Labs, a biopharma company developing potential products for metabolic diseases. The company has not yet disclosed the number of shares it seeks to sell or the stock price it hopes to secure.
Two hedge fund firms own more than 5 percent of the shares before the offering: RA Capital Management, with 5.8 percent, and Cormorant Asset Management, with 5.22 percent. Both invested in just one previous financing round, which took place in February. Hedge fund firm RTW Investments is another previous investor, but is not a 5 percent owner. Several blue-chip VC names are also significant investors in the company, including Andreessen Horowitz, Khosla Ventures, and Kaiser Permanente.
RA Capital is best known for its hedge fund, which was up 13 percent for the year through July, says someone who has seen the results. It is also the most active life sciences hedge fund firm in the private markets. It has made at least 56 new investments this year and made 46 private investments in 2023, according to Crunchbase.
