Bicara, Zenas Plan $180M IPOs Amid Renewed Optimism for Biotech

Bicara Therapeutics and Zenas BioPharma are inching closer to opening a mini-IPO window for drug developers this fall. On Friday, both startups unveiled their plans for initial public offerings (IPOs) of nearly the same size. Bicara Therapeutics, which focuses on oncology, anticipates net proceeds of $182 million, whereas autoimmune biotech Zenas BioPharma is targeting $180.7 million. Bicara intends to sell slightly more shares than Zenas, offering 11.765 million shares compared to Zenas' 11.760 million.

Both Boston-area companies are planning to price their shares between $16 and $18 each and are expected to make their debut on Wall Street next week. If both companies manage successful IPOs, it could pave the way for other biotechs to follow. There is a significant backlog of private biotechs that have been waiting for the right moment to go public, some for many years. The market conditions in recent years have been challenging, even for companies with positive clinical results. Most of the 2024 IPO class are currently trading below their initial offering price.

Nevertheless, investors seem to favor clinical-stage assets in the current market climate, and both Zenas and Bicara meet this criterion. Zenas BioPharma is more advanced in its clinical trials and has multiple ongoing studies. Its lead program is evaluating obexelimab for immunoglobulin G4-related disease in Phase 3 trials. This bifunctional monoclonal antibody is also in mid-stage trials for other conditions.

Bicara Therapeutics is in Phase 1/1b with a bifunctional EGFR/TGF-β antibody named BCA101. The company is testing this asset both as a standalone treatment and in combination with Merck’s Keytruda.

Following Bicara and Zenas in the IPO lineup are MBX Biosciences, which focuses on peptides, and BioAge Labs, an obesity and anti-aging startup. These companies are expected to announce their pricing plans in the upcoming weeks.