(Reuters) – Alumis is targeting a valuation of up to $1.01 billion in its initial public offering in the United States, the therapy developer said on Monday.
Biotech IPOs have shown signs of a rebound this year, but a string of poor post-debut performances have tempered expectations of a full market recovery.
Alumis, previously known as Esker Therapeutics, is moving ahead with its listing more than three months after it secured an upsized $259 million Series C financing. It is looking to raise up to $317.7 million in the IPO by offering nearly 17.7 million shares at a price range of $16 and $18 each.
South San Francisco, California-based Alumis will enter the market on the heels of therapy developer Rapport Therapeutics’ strong market debut earlier this month.
Alumis, whose name is inspired by the words “allumer” – French for illuminate and “immunis” – Latin for the immune system, is involved in developing oral therapies to address immune dysfunction.
The company’s lead candidate, ESK-001, is a potential treatment of plaque psoriasis (PsO) and systemic lupus erythematosus (SLE).
If approved for PsO, ESK-001 would compete against oral clinical therapeutics such as Bristol Myers Squibb’s Sotyktu.
PsO is a skin disease that causes dry, itchy and red skin patches covered with scales, while SLE is a chronic disease wherein the body’s immune system attacks its own tissues.
Alumis loss widened to $49.8 million in the three months ended March 31, from $36 million last year.
Alumis, which has been incubated by healthcare and life sciences investment firm Foresite Capital in 2021, intends to use the IPO proceeds to fund the development of its product candidates.
Its major investors include venture capital fund AyurMaya, hedge fund Baker Brothers Life Sciences and Foresite Capital.
Alumis expects to list on the Nasdaq under the symbol “ALMS”. Morgan Stanley, Leerink Partners, Cantor Fitzgerald and Guggenheim Securities are the underwriters for the offering.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Sriraj Kalluvila and Shailesh Kuber)
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