Financing

Public Company Edition: Cancer-focused Adlai Nortye launched a concurrent initial public offering and private placement, while four other drug developers announced or completed SPAC mergers. Also, Sobi grossed $540m in a rights issue and Immunovant followed early data with a $450m FOPO.

China’s top securities regulator is slowing down the review of initial public offering applications across the board to “stabilize” the stock market. But event prior to the move, Chinese biotechs were operating already under a continuously tightening IPO environment.

Financing Snapshot: Seattle biotech claims its targeted, inhalable versions of Esbriet and Ofev, both oral IPF drugs, may offer better tolerability and stronger efficacy than established products.

Biotech has always been a volatile sector, and it is important for investors to recognize the phases its stocks go through. In particular, the journey through the post-bubble wilderness can be a protracted affair.

RayzeBio's IPO and Genentech's first buy-in into the field show a wave of next-generation companies hoping to expand the radiopharmaceutical field.

Private Company Edition: ReCode’s series B venture capital round grew for a third time, now totaling $260m for precision genetic medicines. Also, DalCor closed an $80m series D, manufacturer Nephron amassed $350m, Hyku launched with a $56m seed financing and Magnet emerged with $50m.

Emerging Company Profile: BioAge has Phase Ib proof-of-concept data in age-related muscle loss and is gearing up for its first Phase II study, but will need fresh cash or a partner for a potential weight loss-related muscle loss study.

Public Company Edition: Neumora grossed $250m and RayzeBio raised $311m in the first initial public offerings since early August. Also, ImmunityBio completes $470m in equity and debt financings, Bausch + Lomb sells $1.4bn worth of notes and Arbutus is among firms making cuts to conserve cash.

The biotech company already has a candidate with a tough target in the clinic for COVID-19 and plans to have four to six candidates in the clinic over the next two years following a $273m series C round.

These are interesting times for Mironid, a Glasgow-based biotech developing small molecule therapeutics for the treatment of autosomal dominant polycystic kidney disease, a life-threatening hereditary condition.

A mix of mega-rounds and smaller seed financings show investment happening at both ends of the venture capital spectrum. In public company financings, Gilead prices $2bn note offering, Biogen secures $1.5bn for Reata deal, Inhibrx completes a $200m PIPE and the IPO market shows new signs of life.

Given that previously announced similar programs failed to attract strong investor interest, South Korea is set to create a new biopharma fund but of a smaller target size and lower qualifying thresholds as it continues to support industry development.