BioAge wants to raise $158 million through IPO

BioAge Labs Inc., an American clinical-stage biotech company developing therapies for obesity and metabolic diseases, is seeking to raise about $158 million through its initial public offering (IPO) and a private placement, Bloomberg reports.

The company, which makes obesity drugs, is offering 7.5 million shares at a price of $17-$19 per share, according to documents filed last week with the US Securities and Exchange Commission (SEC).

Separately, Sofinnova Venture Partners XI LP, an existing shareholder, is expected to buy about $15 million worth of shares at the IPO price in a private placement.

If the top of the IPO price range is factored in, BioAge would have a market value of about $587 million, based on its outstanding listed shares, according to SEC filings.

Richmond, Calif.-based BioAge was valued at $394 million after raising $194 million in a Series D funding round in February, according to data provider PitchBook.

The company's top shareholders are co-founder and chief executive Kristen Fortney, who controls 9.8 percent of it, and entities affiliated with Andreessen Horowitz and Khosla Ventures, with 9.4 percent and 8 percent, respectively, the cited source noted.

BioAge's initial public offering is being led by Goldman Sachs Group Inc., Morgan Stanley, Jefferies Financial Group Inc. and Citigroup Inc. The company intends to list its shares on the Nasdaq market under the symbol "BIOA".

According to Bloomberg, after a series of "lackluster" deals, the biotech industry has new entrants to the IPO market. Drug developers that have raised more than $10 million in U.S. initial public offerings this year were mostly negative, with six of the 11 listed firms falling below their initial public offerings. The average decline in traded shares was 45 percent below the offer price, Bloomberg data show.

In addition to BioAge, MBX Biosciences Inc. will try to buck the downward trend, with bankers and industry lawyers saying market reaction to the next batch of listings will signal whether other high-profile companies can make it in 2024 or early 2025.

Drug developers have raised $2 billion this year in IPOs through Sept. 3, up 24 percent from the same period last year, but the industry's share of U.S. IPO revenue has declined, the source said. cited.

The Nasdaq Biotech Index has gained 9.6% this year, fueled by booms in larger players such as Regeneron Pharmaceuticals Inc. and Alnylam Pharmaceuticals Inc.