Biotech IPOs Surge on Debut: Upsized Deals Boost Shares for Drug Developers Tackling Autoimmune Diseases

Three biotech companies saw their shares rise during their first day of trading after selling more shares than they originally planned in their initial public offerings (IPOs).

Bicara Therapeutics Inc. shares jumped by 42%, reaching $25.50 on Friday. The company increased its IPO size, selling 17.5 million shares at $18 each, which was at the top of their price range. This raised $315 million.

MBX Biosciences Inc. saw its shares rise by 43%, trading at $22.87. MBX also expanded its IPO, raising $163 million by selling 10.2 million shares at $16 each, again at the top of the price range.

Zenas BioPharma Inc. shares went up 4.4%, reaching $17.75. The company’s IPO raised $225 million by selling shares at $17 each, which was in the middle of their expected price range.

These biotech IPOs have made this week the busiest for the sector since July 2021, according to Bloomberg data. So far this year, drug developers have raised $2.7 billion through IPOs, which is a 60% increase compared to the same period in 2023.

The success of these IPOs was a positive sign for the biotech sector after several recent offerings struggled. Of the drug developers that raised more than $10 million in US IPOs earlier this year, seven out of 11 have seen their shares drop below their initial price.

Zenas focuses on treatments for autoimmune diseases, with a lead product that targets cells involved in these conditions. After the IPO, Bristol-Myers Squibb’s ownership in Zenas is expected to drop from 5.3% to 3.7%.

Bicara’s leading drug targets certain types of head and neck cancers, and Biocon Ltd., an Indian company, will see its ownership drop from 16% to 11% after the IPO.

MBX Biosciences develops treatments for endocrine and metabolic disorders. The company is supported by investors like Frazier Life Sciences, New Enterprise Associates, and OrbiMed Advisors.

Zenas trades under the symbol ZBIO and MBX under MBX on the Nasdaq Global Select Market. Bicara trades under BCAX on the Nasdaq Global Market.