The IPO market is getting stronger for fledgling life sciences and biopharma companies that have hedge fund and other venture capital investors. At least two went public late last week, with both receiving a strong reception from investors. Both also upsized their deals, and the stock of one of them is already up significantly.
A third company filed initial plans on Monday to go public.
The big recent winner is Beta Bionics, a medical device company that is creating products to help people with diabetes. The company raised $204 million when it sold 12 million shares at $17 apiece, the high end of its anticipated range. It had originally planned to offer 7.5 million shares for $14 to $16 per share, according to regulatory filings. The stock is up about 40 percent since its IPO.
Seven firms held at least 5 percent of the shares before the offering. They include hedge funds firms RTW Investments, with 11.5 percent of the total shares, and Soleus Capital, with 8.5 percent, according to a regulatory filing. RTW previously participated in five private fundraisings and Soleus shelled out capital for four financing rounds, according to Crunchbase.
Several other hedge funds previously invested in Beta Bionics but didn’t hold a minimum 5 percent of shares before the offering, including Perceptive Advisors, Farallon Capital Management, and Marshall Wace.
The other company that went public last week was Maze Therapeutics, which is developing precision small-molecule therapies for common diseases. It raised $140 million after selling 8.8 million shares at $16 apiece, in the middle of its anticipated range of $15 to $17. Maze wound up selling one million more shares than it had initially planned, says Renaissance Capital.
Matrix Capital Management is listed as a major holder, with 7.1 percent of the shares. The hedge fund is headed by Tiger Cub David Goel, who told clients last August he was shutting down the firm and returning all capital to investors because of personal health issues, Bloomberg reported at the time.
Other hedge funds previously invested in Maze but not listed in the IPO filing as 5 percent owners: Casdin Capital, Deep Track Capital, and Woodline Partners.
On Monday, Sionna Therapeutics said in a regulatory filing it hopes to sell more than 8.8 million shares for between $16 and $18 per share. At the midway point, it would raise about $150 million. The company focuses on treatments for cystic fibrosis.
RA Capital Management is by far the largest investor, with 29.2 percent of the shares before the offering. Viking Global Investors’ Viking Global Opportunities owns 5.5 percent. In addition, Perceptive Advisors earlier made a private investment in the company, but the hedge fund was not listed as a 5 percent owner.
