Shares of BioAge Labs (BIOA.O) opened 25% above their initial public offering price on Thursday in a strong debut for the weight-loss drug developer against the backdrop of surging investor enthusiasm.
The company's shares opened at $22.50 in their Nasdaq debut, compared with the IPO price of $18.
Soaring demand for weight-loss drugs, expected to be a $150 billion market by early 2030s, has attracted more investors toward companies tapping the lucrative segment.
The debut valued BioAge at $757.5 million, compared to the $394.3 million it fetched after its February funding round, according to PitchBook data.
BioAge sold 11 million shares, 46.7% more than originally planned, to raise $198 million after twice upsizing its IPO. The offer was priced at the midpoint of the marketed range of $17 and $19.
"Weight-loss and anti-aging startups are getting significant attention. There'll be a continued appetite for competitors to the major players," Ross Carmel, partner at securities law firm Sichenzia Ross Ference Carmel, said, ahead of the listing.
Shares of diabetes and obesity therapy developer MBX Biosciences (MBX.O), which went public this month, are 44.8% above the IPO price as of last close.
Surging markets and hopes of a "soft landing" for the world's largest economy have also injected life into a moribund U.S. IPO market.
U.S. IPO proceeds touched $29.82 billion this year through mid-September, more than doubling from the same period in 2023, according to Dealogic data.
As of Wednesday, seven U.S. healthcare companies had raised $1.1 billion in September, making it the best month for IPOs from the industry this year, according to data from Dealogic and Reuters calculations.
Richmond, California-based BioAge is developing a pill, azelaprag, in combination with leading weight-loss treatments including Eli Lilly's (LLY.N) Zepbound and Novo Nordisk's (NOVOb.CO) Wegovy.
BioAge has initiated a mid-stage trial in combination with Zepbound and plans to initiate a second such trial with Wegovy in the first half of 2025.
Azelaprag mimics the activity of the exerkine apelin, a peptide released in response to exercise due to muscle contraction.
BioAge says azelaprag in combination with GLP-1 drug has the potential for more than 20% weight loss at one year.
