MBX aims for $114M IPO to rival Ascendis with a long-acting GLP-1/GIP prodrug

MBX Biosciences has recently submitted its prospectus for a $114 million initial public offering (IPO) on Nasdaq. This move is intended to finance the development of three experimental drugs. The company, which specializes in peptide-based treatments, is targeting chronic hypoparathyroidism, post-bariatric hypoglycemia, and obesity with its drug pipeline. MBX aims to trade under its own ticker symbol and plans to offer 8.5 million shares priced between $14 and $16 each.

The proceeds from the IPO, combined with funds from a $63.5 million Series C financing round completed last month, are expected to support the company's operations until mid-2027. This information was disclosed in an updated S-1 filing.

The lead candidate in MBX’s pipeline is MBX 2109, currently in Phase 2 clinical trials for chronic hypoparathyroidism. This drug is a parathyroid hormone peptide prodrug designed for long-term treatment. The field recently saw a significant development when Ascendis Pharma received FDA approval for Yorvipath, its hypoparathyroidism drug, despite an initial rejection in 2023. This new approval comes as Takeda’s Natpara exits the market due to manufacturing issues. Another notable event in the same therapeutic area was AstraZeneca's acquisition of Amolyt Pharma for $1.05 billion earlier this year, targeting a late-stage candidate for hypoparathyroidism.

MBX Biosciences is also advancing MBX 1416, an experimental drug for post-bariatric hypoglycemia, which is currently in Phase 1 clinical trials. Additionally, the company is developing MBX 4291, a long-acting GLP-1/GIP receptor co-agonist prodrug aimed at treating obesity. According to documents submitted to the Securities and Exchange Commission (SEC), funds from the IPO will be used to advance MBX 4291 into clinical trials.

The CEO of MBX Biosciences, Kent Hawryluk, has a history of success in the biotech sector, having previously sold his obesity and diabetes-focused company, MB2, to Novo Nordisk in 2015 for undisclosed terms.

MBX Biosciences' primary investor is Frazier Life Sciences, which holds nearly 22% ownership in the 36-employee company. Other significant stakeholders include New Enterprise Associates, OrbiMed, Deep Track Capital, Wellington Biomedical Innovation, Norwest Venture Partners, and RA Capital, each owning more than 5%.

Based in Carmel, Indiana, MBX Biosciences would join a small group of biotechs from the state that have gone public in recent years. For instance, Point Biopharma, a radiopharmaceutical startup, went public through a SPAC merger in 2021 and was subsequently acquired by Eli Lilly, another Indianapolis-based company.

In the broader biotech sector, more companies are preparing for their public debut. Later this week, oncology biotech Bicara Therapeutics and autoimmune-focused Zenas BioPharma are expected to start trading. Additionally, BioAge Labs, which works on obesity and anti-aging treatments, is also in the pipeline for an IPO.