Alumis Plans IPO to Fund TYK2 Inhibitor Phase 3 Psoriasis Trials

In March, Alumis CEO Martin Babler indicated that an Initial Public Offering (IPO) was just one of many future options. Now, Alumis is transitioning from securing one of the largest private biotechnological fundraises of 2024 to planning its entry into public markets.

Alumis, based in California, has not yet disclosed the number of shares it will offer or the pricing for its IPO. However, a June 7 Securities and Exchange Commission filing reveals that the funds raised will be used to expedite the development of oral therapies aimed at addressing immune dysfunction.

A significant portion of the IPO funds will be allocated to advancing the company's leading drug candidate, ESK-001, an allosteric tyrosine kinase 2 (TYK2) inhibitor, into multiple phase 3 clinical trials for moderate to severe plaque psoriasis later this year. The company also has plans to complete ongoing phase 2 trials for the treatment of uveitis, an inflammatory eye condition, and systemic lupus erythematosus.

Additionally, Alumis intends to use some of the IPO proceeds to further a phase 1 trial of another allosteric TYK2 inhibitor, A-005, which will be tested in healthy volunteers. This compound is being developed as a potential treatment for neuroinflammatory and neurodegenerative diseases.

The announcement to go public comes just three months after Alumis secured $259 million in a series C financing round. This round included contributions from Lilly Asia Ventures and was led by Foresite Capital, Samsara BioCapital, and venBio Partners. At the time, it was the largest private biotech fundraise of the year, though it was soon surpassed by Mirador Therapeutics’ $400 million series A funding.

During the series C funding period, CEO Martin Babler expressed that the successful raise was a testament to the confidence investors had in Alumis’ team, assets, strategy, and technology. He noted that having more advanced molecules in their pipeline gave them an edge in attracting investment. Babler also mentioned that the possibility of an IPO was among several future options they were considering.

Just days after the series C fundraising, Alumis' optimism about ESK-001 was validated when the drug achieved its primary endpoint of improving psoriasis in a phase 2 study. Compared to Bristol Myers Squibb’s approved plaque psoriasis therapy, Sotyktu, ESK-001 demonstrated the potential to be a best-in-class oral TYK2 inhibitor.

Alumis’ announcement of its IPO plans is part of a broader trend of biotech companies entering public markets this summer. On the same day as Alumis' announcement, Rapport Therapeutics, backed by Third Rock, went public with a $154 million offering. Additionally, Telix Pharmaceuticals, listed in Australia, unveiled plans to raise over $200 million via a Nasdaq debut.

These recent moves support predictions made by Medicxi Partner Francesco De Rubertis, Ph.D., who anticipated a resurgence in biotech IPOs this summer.