A biotech backed by Goldman Sachs just went public, and the stock jumped 29%. |
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Attovia Therapeutics (Nasdaq: ATTO) sold 17 million shares at $17 apiece on Tuesday night — the top of its price range. That raised $289 million and valued the company at about $767 million. |
Shares jumped 28.8% on Wednesday. |
Demand was strong enough that Attovia raised the size of the deal twice before pricing. |
Attovia is developing drugs that stop itching. Not the mosquito-bite kind. The chronic, unrelenting kind that keeps people awake at night and has them scratching until their skin breaks. |
CEO Tao Fu says more than 15 million Americans live with this ailment. There's no effective treatment on the market. He believes the company's lead drug could eventually bring in more than $11 billion a year. |
The drug finished its first round of human testing in the first quarter. Two larger trials begin next year. Two more drugs are in the pipeline. One is aimed at eczema and one at inflammatory bowel disease. Both are entering human testing next year. |
There's one approved rival, made by a company called Galderma. Attovia's argument is that its drug intervenes one step earlier in the process, which management believes means faster relief and fewer injections. |
Now here's the detail I find most interesting. |
Attovia didn't invent its own technology. |
It licensed it from Alamar Biosciences (Nasdaq: ALMR), which created Attovia as a separate company and still owns a stake. Alamar went public itself back in April, raised $219.9 million, and the stock is up more than 59% since. |
Biotech has quietly been the best sector for new IPOs this year. |
Look at the record: |
Veradermics (MANE) — up 531% Hemab Therapeutics (COAG) — up 158% Avalyn Pharma (AVLN) — up 61% Scribe Therapeutics (SCTX) — up 60% Apnimed (APMD) — up 57%
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Six of the ten best-performing IPOs last quarter were healthcare companies. Health care listings over the past 12 months have returned 48% on average. While everyone was watching AI and defense deals, this is where the money was quietly made. |
A Goldman Sachs affiliate called Deep Track Capital was an investor in Attovia before the IPO – along with Frazier Life Sciences, and venBio. Together they put in $255.8 million. Morgan Stanley, Leerink Partners, Citi, and RBC ran the offering. |
The IPO leaves it with about $399 million in the bank, which buys time. But drug trials fail all the time. One bad result would erase today's gain and then some. |
That's the trade with early-stage biotech. Real upside if the science works, and not much to fall back on if it doesn't. |
You probably missed today’s 28.8% winner. But you don’t need to miss out on Anthropic, OpenAI or dozens of other upcoming IPOs. |
Just go here to secure your shares – before IPO day. |
Ian Wyatt
Editor, IPO Watch |
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