RayzeBio and Neumora raise over $500M combined in successful IPOs for cancer therapies

Neumora Therapeutics, RayzeBio, initial public offering, Emerging Biopharma

Closing the week on an optimistic note, two biotech IPOs have successfully crossed the finish line with impressive results. RayzeBio, in particular, has surpassed expectations by raising a remarkable $311 million, while Neumora Therapeutics met its target with a $250 million offering.

RayzeBio, with a focus on radiopharmaceuticals, had initially planned to offer 13.2 million shares at a price range of $16 to $18 per share. This setup suggested potential proceeds of approximately $210 million. However, in a Thursday evening announcement, RayzeBio revealed that it not only achieved an $18 per share price but also conducted an upsized offering of 16.1 million shares. Coupled with over a million shares sold by another stockholder, the biotech’s IPO now stands at an impressive $311 million, with gross proceeds estimated at around $290 million after expenses are deducted. This additional funding bodes well for RayzeBio’s lead program, RYZ101, currently in phase 3 development for gastroenteropancreatic neuroendocrine tumors. Furthermore, underwriters have been granted an option to acquire an additional 2.6 million shares at the same price, potentially increasing the total.

Neumora Therapeutics’ IPO raised a solid $250 million, aligning perfectly with the company’s initial estimate. The biotech, specializing in neurological diseases, successfully sold 14.7 million shares of its common stock at a price of $17, which falls within the $16 to $18 range set at the beginning of the week. Underwriters also have the option to acquire an additional 2.2 million shares.

Emerging in 2021 with the support of Amgen, Neumora has expanded its pipeline to include nine investigational programs. Among them is the phase 3 medication navacaprant, currently in development for major depressive disorder and other neuropsychiatric disorders. Neumora is also exploring therapeutic areas such as Alzheimer’s disease and schizophrenia.

The inclusion of Neumora and RayzeBio on the Nasdaq is a positive indicator that despite the challenging market conditions, investor appetite for promising biotech companies going public remains strong. This demonstrates continued optimism in the biotech sector, reinforcing the belief in the potential of these companies to make significant contributions to healthcare and medicine.

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