With the broader IPO calendar still muted, biopharma and life sciences issuers are cautiously testing the waters — and early trading in one name is giving the sector a modest tailwind.
So far, just six companies have gone public in January, with four more slated to issue their shares this week, according to Renaissance Capital. Last year, 202 companies went public. But biopharma and life sciences companies — especially companies with hedge fund participation — are showing signs of heightened activity.
One of the six companies to go public this year has already surged in price. Aktis Oncology, which is developing targeted radiopharmaceuticals to treat solid tumors, raised $318 million when it sold 17.7 million shares at $18 a pop, the high end of the anticipated $16-to-$18 per share. The stock surged 24.4 percent on the first day of trading and is currently up nearly 18 percent from its IPO price. The deal has become an early reference point for other would‑be issuers.
Before the offering, EcoR1 Capital held 10.5 percent of the shares and was expected to own 7 percent afterward. In a January 20 13D filing, the hedge fund said it now owns 4.8 million shares, or 9.1 percent of the total outstanding.
Other hedge fund firms likely have stakes smaller than 5 percent, as they participated in earlier financings but were not included in the filing. For example, in September 2024, RA Capital Management, RTW Investments, and Janus Henderson Investors co-led an upsized $175 million Series B financing, according to a release. Aktis's early success is encouraging for other fledgling biopharmas considering the public markets.
Next up is Eikon Therapeutics, which is working on innovative medicines to address serious unmet medical needs. On Wednesday, it filed plans to sell about 17.7 million shares for between $16 and $18 per share. All of the named 5 percent holders in the filing are venture capital firms. EcoR1 and Soros Capital participated in the company’s $517.8 million Series B financing, and Soros also invested in two previous private financings, according to press releases.
Another prospective issuer, SpyGlass Pharma, recently filed initial plans to go public. The company, which is developing treatments for chronic eye diseases, has not yet disclosed the number of shares or the price target for the offering.
RA Capital Management right now is the second-biggest investor and largest hedge fund investor, with 19.2 percent of the shares, according to a regulatory filing. The shares are held by RA Capital Healthcare Fund and RA Capital Nexus Fund III. Zach Scheiner, a partner with RA Capital, currently sits on SpyGlass’s board of directors.
On the SPAC side, earlier this week, Helix Acquisition Corp. III closed an IPO of 17.25 million shares, which includes 2.25 million shares issued after underwriters exercised their overallotment option at the usual blank-check IPO price of $10 per share. Total gross proceeds were $172.5 million.
This special purpose acquisition company is sponsored by Cormorant Asset Management, which initially aimed to raise $125 million. This is Cormorant’s third SPAC. Helix III will focus on the same sectors as the two others: “We believe the biotechnology, medical technology, and life sciences sectors (including, for example, therapeutics, diagnostics, and medical devices) represent an enormous and growing target market with a large number of potential target acquisition opportunities,” the blank-check company’s regulatory filing says.
Taken together, the early year activity is limited but notable: a thin calendar overall, with biopharma and life sciences supplying a disproportionate share of the offerings — and hedge funds present across several of them.
