Shares of Generate Biomedicines Inc (NASDAQ:GENB) jumped more than 20% on Tuesday as investors positioned ahead of the expiration of the company's post-IPO lock-up period.
The lock-up, which ends Wednesday, will free company insiders, early investors and major shareholders to sell shares issued as part of Generate's $400 million initial public offering earlier this year, which included 25 million shares.
Lock-up expirations often bring volatility and heavier trading volume as markets absorb a larger pool of tradeable shares.
Generate is a clinical-stage generative biology company that combines machine learning, biological engineering and medicine to design new therapeutics. The company's platform pairs computational design with large-scale biological experimentation to create optimized therapies targeting conditions that have historically been difficult or impossible to treat with conventional drug discovery methods.
The platform has produced a broad pipeline spanning multiple therapeutic areas and protein-based modalities. Generate, founded in 2018, describes its approach as a shift from drug discovery to drug generation.