Kairos launches $6M IPO to fund cancer drug trials

Kairos Pharma experienced a tumultuous debut on the stock market, with its share value plummeting by 35% on its first trading day. By the end of Monday, the shares were valued at $2.60, a significant drop from the initial offering price.

Over the weekend, while three other biotechs made headlines with their Nasdaq debuts, Kairos Pharma quietly launched its IPO on the NYSE under the ticker "KAPA" on September 16. Unlike the larger-scale IPOs that garnered nine-figure sums, Kairos raised a comparatively modest $6.2 million. The company offered 1.55 million shares at $4 each. Additionally, underwriters have a 45-day window to purchase an extra 232,500 shares at the same price, potentially adding another $930,000 to the funds raised.

The primary goal for the proceeds from the IPO is to advance Kairos Pharma’s leading drug candidate, ENV 105. This monoclonal antibody targets endoglin and is intended to overcome resistance to standard treatments. Currently, ENV 105 is being evaluated in a phase 1 clinical trial for non-small cell lung cancer in combination with AstraZeneca’s Tagrisso. There is also a phase 2 study underway for prostate cancer, pairing ENV 105 with Johnson & Johnson’s Erleada.

Beyond ENV 105, Kairos Pharma’s pipeline includes other promising preclinical candidates. One such candidate is KROS 101, a small molecule that activates the GITR ligand. This action is intended to promote the growth and cytotoxic function of T cells, bolstering their ability to fight cancer. Another candidate, ENV 205, is an antibody targeting mitochondrial DNA, which tends to increase as patients develop resistance to chemotherapy.

Kairos’ rocky start contrasts sharply with the positive reception of three other biotech IPOs on Friday. Bicara Therapeutics, with the largest offering of the day at $315 million, saw its shares rise 41% from an $18 debut price to $25.41 by Monday’s close. Similarly, MBX experienced a 26% increase to $21.65, and Zenas BioPharma’s shares rose 5% to $17.90.

Kairos Pharma, originally a spinout from Cedars-Sinai Medical Center in 2013, merged with AcTcell Biopharma in 2019. Two years later, the company expanded by acquiring Enviro Therapeutics, which had been working on ENV 105.

The mixed outcomes between Kairos Pharma and the other biotechs highlight the unpredictable nature of the stock market, especially for new entrants. While some firms can captivate investor interest and see their share prices soar, others may face a more challenging reception. For Kairos, the focus now shifts to advancing their clinical programs and proving the potential of their drug candidates to both the medical community and investors.

Ultimately, Kairos Pharma’s journey underscores the high stakes and volatility inherent in the biotech industry, where groundbreaking research and development efforts must continually be balanced against market dynamics and investor expectations.