RARE Daily

Metagenomi Catches the IPO Wave, Raising $94 Million to Advance Gene Editing Pipeline

February 9, 2024

Rare Daily Staff

Metagenomi became the second rare disease focused biotech company to complete an initial public offering this year, as market interest in biotech is taking off after more than a year-long doldrum.

Indeed, Metagenomi’s IPO follows that of Kyverna Therapeutics’ $319 million raise and surpasses the $108 million raised by the two rare disease focused IPOs in 2023.

Metagenomi, which is developing curative therapeutics for patients using its proprietary, comprehensive metagenomics-derived gene editing toolbox, priced 6.25 million shares of its common stock at $15.00 per share, on the low end of its proposed range. The gross proceeds to Metagenomi from the offering, before deducting the underwriting discounts and commissions and offering expenses, are expected to be $93,750,000. In addition, Metagenomi has granted the underwriters a 30-day option to buy an additional 937,500 shares of its common stock at the initial public offering price, less underwriting discounts and commissions. Metagenomi shares are expected to begin trading on the Nasdaq Global Select Market under the ticker symbol “MGX.”

Metagenomi’s proprietary suite of CRISPR-based gene editing systems applies computational algorithms to screen thousands of genomes from microorganisms around the world. The approach leverages big data and the science of metagenomics to quickly identify novel gene editing systems with properties that leapfrog first generation technologies. These include the capability to precisely edit genomes via single base changes, knockouts, or integrations, with lower potential for off-target effects.

The company’s preclinical pipeline includes several candidates for cardiovascular disease, three of which are partnered with Moderna and Ionis Pharmaceuticals, and wholly owned programs in neuromuscular diseases and cystic fibrosis.

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