Alumis Prepares IPO to Fund Sotyktu Competitor

Alumis, a biotechnology startup, recently announced its intentions to initiate an initial public offering (IPO) to support the clinical development of two drugs targeting autoimmune and neurological diseases. Both of these drugs are TYK2 inhibitors, a class of oral medications designed as alternatives to injectable biologics used for treating inflammatory conditions.

One of Alumis' TYK2 inhibitors is poised to enter late-stage trials for psoriatic arthritis later this year and is currently in Phase 2 trials for other autoimmune diseases. Concurrently, Alumis is also advancing a similar drug aimed at the central nervous system, which is presently in a Phase 1 trial.

The biotech sector saw a rapid start to the year in terms of IPOs, but the pace has decelerated. To date, 11 companies have raised around $1.6 billion in collective proceeds. This trend is in contrast to the previous years, with only one biotech company, Rapport Therapeutics, going public in the last two months.

Alumis' IPO will serve as the latest gauge of investor enthusiasm in the field of immunology. This sector has attracted significant attention from pharmaceutical companies and biotech venture firms throughout the year. Notably, there have been ten acquisitions of immune drug developers in 2024, the highest number in over six years. Johnson & Johnson's $1.25 billion acquisition of Yellow Jersey Therapeutics last month is a standout among these transactions.

Several immunology-focused startups have also secured substantial funding rounds. For instance, Mirador Therapeutics, AltruBio, and Capstan Therapeutics each raised over $100 million. Alumis itself completed a $259 million Series C funding round three months ago. Among the biotech firms that have gone public this year, only two are immune drug developers. However, these companies are responsible for three of the five largest IPOs in 2023, which include Acelyrin, Kyverna Therapeutics, and Apogee Therapeutics.

The proceeds from Alumis' IPO will be directed towards Phase 3 trials for its lead drug, ESK-001. Alumis positions ESK-001 as a potential competitor to Bristol Myers Squibb’s TYK2 inhibitor, Sotyktu, which received approval in 2022 for plaque psoriasis and is being evaluated for other inflammatory conditions. Alumis claims that ESK-001 is more selective and potent compared to Sotyktu, although this has yet to be demonstrated fully. Additionally, ESK-001 is behind a similar TYK2 drug being developed by Takeda. Ventyx Biosciences, another biotech company with a similar focus, experienced a significant market value drop and had to revise its development strategies following disappointing study results in 2023.

Alumis is initially targeting psoriatic arthritis with ESK-001, a condition for which Sotyktu has not yet been approved. Phase 3 studies for this indication are planned to commence later in the year. Simultaneously, Phase 2 trials for lupus and uveitis are ongoing.

Given that certain genetic mutations in TYK2 are linked to a protective effect in multiple sclerosis, Alumis is also developing another TYK2 inhibitor, A-005, aimed at treating neuroinflammatory conditions. Results from the Phase 1 trial for A-005 are anticipated by the end of 2024.

Alumis acquired ESK-001 through the acquisition of startup FronThera in 2021. Part of the IPO proceeds will be allocated to a $23 million payment to FronThera’s shareholders upon the commencement of a Phase 3 trial. Further milestone payments totaling $60 million are also outlined in the IPO filing.

Originally known as Esker Therapeutics, Alumis was incubated by Foresite Labs, a San Francisco-based startup incubator, and was established in 2021.

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