Actuate, a Clinical-Stage Cancer Biotech, Plans Summer IPO

Actuate Therapeutics is anticipating utilizing funds from an Initial Public Offering (IPO) to advance its clinical trials, specifically targeting a phase 2 study for elraglusib in treating refractory Ewing sarcoma. This development suggests a potential revival of public market interest in biotech IPOs during the summer.

Based in Texas and Ireland, Actuate Therapeutics is developing elraglusib, a glycogen synthase kinase‐3 beta (GSK-3β) inhibitor, currently in phase 2 trials for pancreatic cancer. Details regarding the number of shares and pricing for the IPO have not been disclosed. However, the company has indicated in a Securities and Exchange Commission filing that the IPO proceeds will be allocated towards completing the ongoing midstage pancreatic cancer trial and a phase 1 dose-escalation trial for pediatric refractory cancer. Furthermore, part of the funds will be used to initiate a phase 2 study of elraglusib in refractory Ewing sarcoma.

Elraglusib works by binding to GSK-3β, interfering with cancer pathways that are linked to tumor cell invasion and resistance to chemotherapy and radiation. Preclinical trials have shown that this intravenous small molecule holds promise against various cancers, including urothelial cancer and renal cell carcinoma. These positive results prompted Actuate to begin human trials in 2018. The ongoing phase 2 trial for pancreatic cancer has demonstrated a disease control rate of 57% and an objective response rate of 39% when combined with the chemotherapy drug Gemzar.

The biotech IPO market experienced a downturn after an initial surge at the beginning of the year. However, Actuate is the second biotech firm in May to express intentions to go public, following Rapport Therapeutics, which plans to use IPO funds to advance a clinical-stage seizure disorder asset into phase 2 trials. Although neither Actuate nor Rapport has announced their IPO pricing, their public offerings suggest a renewed interest in biotech investments despite the mixed outcomes of earlier IPOs this year.

A review by Fierce Biotech using data from S&P Capital IQ highlighted that only CG Oncology is trading above its IPO price among the companies that went public earlier this year. Notably, CG Oncology, focusing on bladder cancer, was the first biotech to go public this year and raised a significant $380 million through an upsized offering.

The recent IPO announcements from Actuate and Rapport lend support to predictions made by Medicxi Partner Francesco De Rubertis, who suggested that the biotech IPO market might reopen by summer. These developments indicate a cautious optimism within the biotech sector, as companies continue to pursue public funding avenues to advance their clinical research and development programs.

In conclusion, Actuate Therapeutics' plans to utilize IPO funds for progressing its elraglusib trials reflect a broader trend of renewed interest in biotech public offerings. This move could be an indicator of a potential resurgence in the biotech IPO market, providing critical financial support for innovative cancer therapies and other medical advancements.

How to obtain the latest research advancements in the field of biopharmaceuticals?

In the Synapse database, you can keep abreast of the latest research and development advances in drugs, targets, indications, organizations, etc., anywhere and anytime, on a daily or weekly basis. Click on the image below to embark on a brand new journey of drug discovery!