In an exciting market debut, Septerna’s shares surged nearly 31% on Friday, propelling the Goldman Sachs-backed biotech firm to a valuation of $970 million. The company’s shares opened at $23.50, significantly above the initial public offering (IPO) price of $18.
Just a day before its debut, Septerna upsized its offering, selling 16 million shares and raising $288 million. This year’s trend shows a strong appetite from investors for biotech firms, with September proving to be one of the busiest months for healthcare IPOs, according to Dealogic data.
Septerna joins the ranks of other successful biotech launches, such as MBX Biosciences and TPG-backed Bicara Therapeutics, whose shares are currently trading 33% and 25.6% higher than their respective IPO prices.
Key factors contributing to this positive sentiment include the Federal Reserve’s recent decision to ease monetary policy and a robust equity market, creating a favorable environment for new listings this fall.
Based in California, Septerna is focused on developing therapies that target G-protein-coupled receptors (GPCR), a vital class of proteins that facilitate communication between cells. GPCRs play a crucial role in regulating various physiological processes, including metabolism, secretion, cell growth, and immune responses.
The company plans to use the proceeds from its IPO to advance its research and develop products, including SEP-786, its lead candidate for treating hypoparathyroidism—a condition that disrupts calcium levels in the blood and bones.
J.P. Morgan, TD Cowen, Cantor, and Wells Fargo Securities are acting as joint bookrunners for the IPO. Goldman Sachs holds a 5.4% stake in Septerna, while healthcare-focused venture capital firm Third Rock Ventures retains a 33.5% stake.
With this strong debut, Septerna is poised to make a significant impact in the biotech space, and investors will be watching closely as the company works to develop its innovative therapies.
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