Iambic Therapeutics files for U.S. IPO as biotech listings stay resilient

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Iambic Therapeutics files for IPO

Highlights

Iambic Therapeutics filed for a U.S. IPO as part of a robust biotech IPO pipeline, which remains resilient despite broader market volatility.
Biotech IPO performance is strong in 2024, with all five best-performing IPOs above $50 million coming from the sector, driven by drug advancements and acquisitions.
Iambic, backed by Nvidia, Qatar Investment Authority, and others, has raised about $461.8 million to date and announced a multi-year AI drug discovery partnership with AbbVie.

Biotech IPO pipeline builds despite market volatility

As reported by Reuters, Iambic Therapeutics filed on Monday for a U.S. initial public offering, adding to a run of biotech listings that is holding up even as broader market sentiment faces pressure from the Iran war, AI-led disruptions, rising bond yields and interest rate hikes.

Analysts say biotech offerings remain relatively insulated from those pressures, with issuance this year supported by a wave of acquisitions by large drugmakers. Retension Pharmaceuticals and TRex Bio also filed for U.S. IPOs on Friday, while ADARx Pharmaceuticals launched its roadshow earlier on Monday.

Matt Kennedy, senior strategist at Renaissance Capital, said all five of the year's best-performing IPOs with deal sizes of $50 million and above are biotechs, with performance driven largely by drug advancement and mergers and acquisitions.

AI drug discovery strategy and backer support

Founded in 2019 as Entos, San Diego-based Iambic is advancing a pipeline of drug candidates developed with its AI platform for solid tumors. Its lead candidate, IAM1363, is in an early-stage trial targeting solid tumors including breast cancer.

Earlier on Monday, Iambic and AbbVie unveiled a multi-year collaboration aimed at accelerating AI-driven discovery of small-molecule therapies. The company says it plans to sell new shares in the offering and has raised about $461.8 million since inception from technology- and healthcare-focused investors.

Major backers include Nvidia, Qatar Investment Authority, Catalio, Nexus Ventures and Coatue Management. J.P. Morgan, Jefferies, BofA Securities and Citigroup are underwriting the offering.

Our earlier coverage of Novo Nordisk’s strategy update looked at how the drugmaker is trying to broaden its pipeline beyond Ozempic and Wegovy after a sharp drop in market value and tougher GLP-1 competition. The company outlined plans to build multiple future blockbuster medicines by 2030 and expand oral Wegovy capacity, but investors reacted cautiously as pricing pressure and slower growth targets highlighted how competitive the obesity-drug market has become.

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