Feb 23 (Reuters) – Drug developer Generate Biomedicines said on Monday it was targeting a valuation of up to $2.17 billion its initial public offering in the United States, tapping into a resurgent biotech market that has seen listings pick up pace.
Backed by venture firm Flagship Pioneering, which has incubated several biotechs, including Moderna, Generate is seeking to raise up to $425 million in its IPO by offering 25 million shares priced between $15 and $17 apiece.
Biotech IPOs are off to a strong start this year after a sluggish 2025 as easing interest rates and capital inflows into the sector boost appetite for stock market flotations.
Aktis Oncology, Veradermics, Eikon Therapeutics and SpyGlass Pharma are among the biotech firms that have gone public in New York so far this year.
Generate, founded in 2018 by Flagship, uses AI to replace trial-and-error drug discovery methods and create novel protein-based therapeutics. Flagship CEO Noubar Afeyan holds 57.7% stake in the Somerville, Massachusetts-based company.
Its lead product candidate, GB-0895, to treat severe asthma is being tested in a late-stage trial. The study is expected to be fully enrolled by the first half of 2028.
The company raised $273 million in 2023 in a Series C financing, which attracted investors such as Amgen and Nvidia’s venture capital arm.
Generate aims to list on the Nasdaq under the symbol “GENB”. Goldman Sachs, Morgan Stanley, Piper Sandler, Guggenheim Securities and Cantor are the underwriters for the offering.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shilpi Majumdar)
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