By Pragyan Kalita
Sept 25 (Reuters) – Shares of ADARx Pharmaceuticals rose 30% above their initial public offering price on Friday after the late-stage gene therapy developer raised $446.3 million in an upsized US initial public offering.
The shares opened at $22.10, above their IPO price of $17. The San Diego-based firm sold 26.3 million shares at the top end of its marketed range, compared to an earlier plan to sell 21.9 million shares.
Founded in 2019, ADARx’s experimental drugs target diseases related to immunity, kidney, cardiovascular and neurological systems.
Drugmaker AbbVie has agreed to invest up to $100 million in a concurrent private placement, which would give it a roughly 4.9% stake post-IPO, ADARx said.
“Having AbbVie as a prominent backer made the company stand out, with the external validation adding to the appeal alongside its Phase 3 lead drug, with top-line trial data expected by the end of 2027,” IPOX Research Associate Lukas Muehlbauer told Reuters.
Biotech has emerged as a bright spot in this year’s IPO market, with a steady flow of listings continuing into the fall as investors favor the sector’s relative insulation from the Iran war and AI-driven disruption.
Drug developers City Therapeutics and Iambic Therapeutics filed for US IPOs this week, while Retension Pharmaceuticals and TRex Bio filed for listings last week.
Electra Therapeutics also raised $350 million in an upsized US IPO before making its market debut last Friday. Its shares have fallen about 21% since.
“On the biotech IPO pipeline, investors are still being selective, focusing on companies with more mature clinical assets and enough cash to reach key catalyst milestones,” Muehlbauer said.
“ADARx also benefits from having a broader platform that could support multiple programs, rather than depending on the success of just one or two assets.”
(Reporting by Pragyan Kalita in Bengaluru; Editing by Shreya Biswas)
