Dreamstime
Two biotechnology companies, VectivBio Holding and Reneo Pharmaceuticals, are making their market debuts on Friday.
Last year, biotech emerged as one of the busiest sectors of the IPO market. There were 102 healthcare initial public offerings last year, valued at $24.8 billion. Of the 102, three-fourths were biotechs, raising $20.1 billion. This year, there have been 40 healthcare offerings, including biotechs, in the first quarter, representing about $8.7 billion, Dealogic said.
In addition to both being biotechs, VectivBio and Reneo share two other things: Both are trading on the Nasdaq and both are unprofitable.
First up is VectivBio, which collected nearly $128 million. The Swiss company sold 7.5 million shares at $17, the midpoint of its $16 to $18 price range. It is scheduled to trade under the ticker VECT.
BofA Securities, SVB Leerink, and Credit Suisse are the underwriters on the deal.
Pfizer (ticker: PFE) acquired Therachon Holding in 2019 and spun off VectivBio into a separate company. VectivBio is developing treatments for rare gastrointestinal, or GI, disorders. Its product candidate, apraglutide, is used to treat short bowel syndrome, or SBS.
VectivBio does not generate revenue. Losses widened to nearly $60 million for the year ended Dec. 31 from $23.5 million in 2019, its prospectus said.
Reneo raised about $94 million after selling 6.25 million shares at $15, the bottom of its $15 to $17 price range. The San Diego company will trade under the symbol RPHM.
Jefferies, SVB Leerink, and Piper Sandler are the underwriters on the deal.
Reneo is developing therapies for patients with genetic mitochondrial diseases, which occurs when structures that are supposed to produce energy for a cell don’t work. Its lead product candidate, REN001, completed an open-label Phase 1b clinical trial in patients with primary mitochondrial myopathies, or PMM. Patients with PMM often report chronic fatigue or a lack of endurance.
Losses for Reneo widened to $19.5 million for the year ended Dec. 31 from $12.4 million in 2019, its prospectus said. Reneo has not generated any revenue. It has 23 employees.
Write to luisa.beltran@barrons.com
