Bicara Therapeutics and Zenas BioPharma are now a step closer to kicking open a mini-IPO window for drug developers this fall.
The startups outlined plans on Friday morning for IPOs of nearly identical sizes. Oncology-focused Bicara expects $182 million in net proceeds, while autoimmune biotech Zenas is eyeing $180.7 million. Bicara plans to sell a few more shares than Zenas: 11.765 million versus Zenas’ goal of 11.760 million.
Both Boston-area biotechs are aiming for initial pricing between $16 and $18 per share and will likely make their Wall Street entries next week.
If Bicara and Zenas stick their landings, other biotechs could follow suit. There’s a growing backlog of private biotechs that have been waiting for their moment on the public markets for years, in some cases. The market dynamics of recent years have been unforgiving even for companies with positive readouts. Most members of the 2024 IPO class are trading below their first-day price.
That said, investors favor clinical-stage assets in this market environment, and both Zenas and Bicara fit the bill.
Zenas is further along and has more trials underway. Its lead program is testing obexelimab for immunoglobulin G4-related disease in Phase 3. The bifunctional monoclonal antibody is in mid-stage trials for other indications as well.
Bicara is in Phase 1/1b with a bifunctional EGFR/TGF-β antibody known as BCA101. The startup is testing the asset alone and in combination with Merck’s Keytruda.
Behind Bicara and Zenas in the IPO queue are peptide biotech MBX Biosciences, and obesity and anti-aging startup BioAge Labs. They’re expected to unveil pricing plans in the coming weeks.