RARE Daily

Two Rare Disease Biotechs Raise a Combined $363 Million in Initial Public Offerings

July 24, 2020

Annexon and Inozyme Pharma raised a combined $363 million in initial public offerings to advance their programs in rare diseases.

Both companies upsized their offerings ahead of their IPOs, which were oversubscribed and completed at or above their proposed target range. 

Less than a month after raising $100 million in a funding round, early-stage biotech Annexon raised $251 million in an IPO through an offering of 14.8 million shares at $17. The company had originally planned to offer 10 million shares at a range of $14 to $16, and had raised that plan to 12.5 million shares at a range of $15 to $16. Annexon will trade on the Nasdaq Global Select Market under the ticker symbol “ANNX.”

Annexon’s pipeline is focused on therapies for patients with classical complement-mediated disorders of the body, brain, and eye. The company’s lead candidate, ANX005, is an experimental monoclonal antibody designed to block C1q and activation of the classical complement cascade, which it is advancing into a phase 2/3 clinical trial in patients with Guillain-Barré syndrome, a rare condition typically triggered by a preceding infection that impacts the peripheral nervous system. Annexon also plans to test ANX005 to treat warm autoimmune hemolytic anemia, Huntington’s disease, and amyotrophic lateral sclerosis.

Preclinical biotech Inozyme Pharma raised $112 million in its IPO through an offering of 7 million shares at $16 a share. The company had originally planned to raise $75 million through the sale of 5 million shares at a range of $14 to $16, and upsized the offering to 6.5 million shares ahead of the IPO. Inozyme will trade on the Nasdaq Global Select Market under the ticker symbol “INZY.”

Inozyme is focused on developing treatments for rare diseases of abnormal mineralization. The biotech’s lead candidate INZ-701 is an enzyme replacement therapy in development for the treatment of mineralization disorders of the circulatory system, bones, and kidneys, which it plans to move into the clinic by the end of the year.

Biotech IPOs have been on a hot streak despite a pandemic wreaking havoc on the U.S. economy. Forty-two biotechs have completed IPOs in 2020 so far, raising $9.7 billion to fund their programs. Among these, one-third or 14 companies are focused on treatments for rare diseases and have added $2.8 billion to their coffers.

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