Structure proves obesity works in lean times

 Given the astonishing expectations for GLP-1 agonists in diabetes and obesity it makes sense that one of the most successful biotech IPOs for some time is that of Structure Therapeutics, a developer of just these kinds of agents. The company raised $161m through an upsized Nasdaq listing on Friday, its shares closing up 73% after being priced at the top of the range. This demand signals support for developers working in trendy therapy areas; however, those deemed higher risk are still likely to struggle. Mineralys, which plans an offering of a similar size, will provide the next test of whether the IPO market is really recovering. A phase 2 study of MLS-101, Mineralys’s hypertension therapy, was toplined a success in November. Elsewhere, three infection-focused groups – Alopexx, 60 Degrees and Squarex – are queuing up. But the biggest in the offing is Kenvue, the spin-out of Johnson & Johnson’s consumer care business. This could be worth $5bn, though with J&J expected to keep at least 80% of the voting power, and the business being highly cash-generative, the deal is not really a test of the market’s risk appetite.

Scheduled biotech IPOs
Company	Focus	Most advanced phase	Expected trading date	Expected deal size ($m)
Intensity Therapeutics	Cancer	Phase 1	Feb 6	8
Mineralys Therapeutics	Heart disease	Phase 2	Feb 10	150
Alopexx	Infectious disease	Phase 2	Feb 15	15
Source: IPOscoop & Renaissance Capital.

 

The biotech IPO queue
Company	Focus	Most advanced phase	Filing date	Expected deal size ($m)
60 Degrees Pharmaceuticals	Infectious disease	Marketed	Jan 31	Not specified
Squarex Pharmaceutical	Infectious disease	Phase 2	Jan 17	17.8
Chromocell Therapeutics	Pain	Phase 1	Jan 11	11.5
Kenvue	Consumer health	Marketed	Jan 4	100*
Note: only companies that filed in 2023. *J&J's consumer health spinout; figure is a placeholder. Source: IPOscoop & Renaissance Capital.  https://www.evaluate.com/vantage/articles/news/deals-snippets/structure-proves-obesity-works-lean-times