Lexeo Therapeutics has launched an initial public offering for the sale of more than nine million shares at US$11 a pop, aiming to raise a total of US$100 million in gross proceeds.
The company expects to close the offering on November 7 and start trading on the Nasdaq on Friday under the ticker symbol $LXEO.
The funds from its IPO will help Lexeo fund the development of its three main gene therapy programs.
These include LX2006, the biotech’s main asset, which is being trialled in a Phase I/II study for Friedrich’s ataxia - an inherited disorder that affects some of the body's nerves.
Lexeo is also advancing its lead Alzheimer’s disease candidate LX1001 in Phase I/II studies and LX2020, which is being assessed for arrhythmogenic cardiomyopathy.
Readouts for all three programs are expected next year.
IPO pipeline has been dry
The biotech IPO pipeline has been comparatively dry in 2023, with only about 20 public offerings launched so far. In comparison, 2022 witnessed 47 IPOs with a total value of ~US$4 billion, while more than 150 companies filed their offerings in 2021, raising more than US$25 billion in total.
The IPO surge in recent years was driven largely by the COVID-19 pandemic and the launch of mRNA vaccines, which garnered significant investor interest in biotech. Now investors are looking to put their money only behind biotechs that have demonstrated the viability of their products, amid an economic slowdown and high interest rates.
This year, only a few companies have met this standard including Acelyrin, which raised a total of US$540 million and Mineralys, which collected US$192 million.
Johnson & Johnson (NYSE:JNJ)’s consumer healthcare spin-off Kenvue also went public this year and raised a remarkable US$41 billion.