London: Immunology-based therapy developer Xenas Biopharma on Thursday said it has raised $225 million in its US initial public offering (IPO).
The clinical-stage company, backed by drugmaker Bristol-Myers Squibb, priced its offering of 13.2 million shares at $17 a share, the midpoint of its target range of $16 to $18 a share.
Despite 2024 being hailed by many analysts as a comeback year, the US IPO market has struggled to gain traction. Many companies have abandoned their plans to go public due to weak market conditions.
Zenas, which does not have any products approved for commercial sale, is developing its lead candidate obexelimab for the treatment of various immunological and inflammatory diseases.
These include multiple sclerosis, a chronic neurological disorder, and systemic lupus erythematosus (SLE), a chronic disease where the body’s immune system attacks its own tissues.
The Waltham, Massachusetts-based company, which was incorporated in 2019, plans to use the proceeds of the IPO to advance the clinical development of obexelimab and prepare for its potential launch in the United States and Europe, pending approval.
Zenas will list on the Nasdaq Global Select Market on Friday under the ticker symbol “ZBIO.”
Biotechnology company MBX Biosciences and biopharmaceutical firm Bikara Therapeutics are also set to go public with Zenas on Friday.
Morgan Stanley, Jefferies, Citigroup Global Markets and Guggenheim Securities are underwriting Zenas’ offering.
(Reporting by Rishabh Jaiswal and Pritam Biswas in Bengaluru; Editing by Taseem Zahid and Sonia Cheema)
