Goldman-backed drug developer Septerna targets $743 mln valuation in upsized US IPO
Adds background on biotech sector in paragraphs 3-5 and Septerna's lead drug in paragraphs 6-7
Oct 24 (Reuters) -Goldman Sachs-backed drug developer Septerna said on Thursday it was seeking a valuation of $743.1 million in its upsized initial public offering in the United States, a sign of upbeat investor sentiment for the capital-intensive sector.
Septerna, in which Goldman owns a 5.4% stake, now aims to raise $275 million by selling nearly 15.3 million shares priced at $18 apiece. It had earlier planned on selling about 10.9 million shares at a price range of $15 to $17 each.
Drug developers have achieved resounding success in the fall U.S. IPO market, with all the $100-million plus offerings since September trading well above their issue price.
All those offerings were also upsized as investors strongly backed the stock market listings.
Strong post-IPO performance by drug developers Bicara Therapeutics BCAX.O, MBX Biosciences MBX.O, BioAge Labs BIOA.O and Upstream Bio UPB.O are also encouraging potential candidates in the sector to push ahead with their offerings.
South San Francisco, California-based Septerna's lead experimental candidate, SEP-786, is being developed to treat hypoparathyroidism — a condition in which the body produces insufficient levels of parathyroid hormone that disrupts calcium levels in the blood and bones.
SEP-786 is currently being tested in an early-stage study and the company expects to report data from the trial in mid-2025.
J.P. Morgan, TD Cowen, Cantor and Wells Fargo Securities are the underwriters for the offering.
Septerna expects to list on the Nasdaq under the symbol "SEPN".
A glance at healthcare listings in the fall US IPO market https://reut.rs/4hfQ94T
Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shailesh Kuber and Shilpi Majumdar
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