(Reuters) -Three U.S. healthcare startups priced their initial public offerings (IPO) on Thursday, including Upstream Bio which raised $255 million at a valuation of about $830 million. The company, which is developing treatments for some respiratory disorders, upsized its IPO to sell 15 million shares at $17 apiece, the top end of its marketed range […]
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Upstream Bio, two other U.S. biotech startups price IPOs as healthcare listings rise
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(Reuters) -Three U.S. healthcare startups priced their initial public offerings (IPO) on Thursday, including Upstream Bio which raised $255 million at a valuation of about $830 million.
The company, which is developing treatments for some respiratory disorders, upsized its IPO to sell 15 million shares at $17 apiece, the top end of its marketed range of $15 to $17.
September was the busiest month for healthcare IPOs this year, Dealogic data showed. Strong debuts by firms such as BioAge Labs and Bicara Therapeutics have also encouraged listings among other IPO candidates, underscoring the sector’s strong rebound in 2024.
TPG-backed medical device maker CeriBell also upsized its IPO to raise $180 million at a valuation of $578 million, while Kaiser Permanente-backed CAMP4 Therapeutics raised $75 million.
All three companies are expected to trade on the NASDAQ from Friday.
Upstream’s lead experimental drug, verekitug, is being developed in mid-stage studies to treat severe asthma and chronic rhinosinusitis with nasal polyps, a condition characterized by benign growths that cause pain and stuffiness.
Prior to the IPO, Upstream Bio had raised about $400 million from investors since its inception in 2021, including a $200 million funding round last year that was led jointly by Enavate Sciences and Venrock Healthcare Capital Partners.
CeriBell, which makes an artificial intelligence-powered brain monitoring system to detect neurological conditions, priced its IPO of 10.6 million shares at $17 per share, at the higher-end of its marketed range between $16 and $17 each.
The company plans to pursue additional regulatory clearances in Europe within two to four years of the IPO.
CAMP4 priced its IPO at $11 apiece, well below its targeted range of $14 to $16. However, it sold 6.8 million shares in the IPO, more than the anticipated 5 million shares, to raise proceeds within their target.
(Reporting by Gursimran Kaur, Harshita Meenaktshi, Arasu Kannagi Basil and Shubham Kalia in Bengaluru; Editing by Alan Barona and Abinaya Vijayaraghavan)