MBX Biosciences, which develops peptide therapies to treat endocrine and metabolic disorders including diabetes and obesity, said Thursday it has raised $163.2 million in its U.S. initial public offering.
The biotech company priced its offering of 10.2 million shares at $16 each, at the high end of its target range of $14 to $16 each.
He IPO valued the company at $482.5 million.
New weight-loss drugs such as Eli Lilly’s LLY.NZepbound and Novo Nordisk’s NOVOb.COWegovy have caught the attention of investors after proving effective treatments for obesity and showing potential to reduce the risk of stroke or heart attack.
The sector’s enthusiasm could boost the IPO -The company is tied to debt as the broader market for new issues has been sluggish despite hopes for a significant recovery.
Wall Street estimates that global annual sales of weight-loss drugs will reach $150 billion by the early 2030s.
MBX’s lead experimental candidate, MBX 2109, is being developed to treat chronic hypoparathyroidism, a condition in which the body produces insufficient levels of parathyroid hormone, which disrupts calcium levels in the blood and bones.
The company is also developing MBX 4291, an experimental therapy for the treatment of obesity. The therapy mimics the effect of two gut hormones, GLP-1 and GIP, and is currently in preclinical development.
Lilly’s tirzepatide, sold as Zepbound for weight loss and Mounjaro for diabetes in the US, also mimics the function of these two gut hormones.
MBX will be listed on the Nasdaq Global Select Market under the symbol “MBX.”
JPMorgan, Jefferies, Stifel and Guggenheim Securities are underwriting the offering.
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