Rapport Therapeutics and Telix Pharma File IPOs Amid Slowdown in Biotech Public Offerings

Rapport Therapeutics, supported by Johnson & Johnson, announced on Friday its intention to initiate an initial public offering (IPO) to fund its research on small molecules targeting the central nervous system. Concurrently, radiopharmaceuticals developer Telix Pharma also notified the SEC of its plan to go public on the Nasdaq exchange.

Rapport Therapeutics has opted to keep specific details about the IPO confidential in its SEC filing, including the number of shares to be offered and the expected price range. The raised funds are earmarked for advancing Phase II clinical trials of its lead compound, RAP-219, which has already completed proof-of-concept trials in focal epilepsy, peripheral neuropathic pain, and bipolar disorder. RAP-219, an oral tablet, was initially developed by Janssen, a division of J&J, and is tailored to selectively target a neuronal receptor-associated protein for the AMPA receptor.

“Most neuroactive drugs lack this specificity, often resulting in undesired and intolerable side effects,” Rapport's filing stated. The company believes its precision product candidates have the potential to revolutionize the standard of care for numerous CNS disorders.

Beyond RAP-219, Rapport is also developing a long-acting injectable version of its lead candidate and is in the early stages of researching nicotinic acetylcholine receptor programs for chronic pain and hearing disorders. In 2023, Rapport raised $250 million through Series A and Series B funding rounds, with contributions from investors such as J&J Innovation, ARCH Venture Partners, and Third Rock Ventures.

If successful, Rapport will become the third neuroscience-focused biotech to go public in 2024. Earlier in the year, Contineum Therapeutics raised $110 million through its IPO in April, while Alto Neuroscience garnered $129 million in an initial offering in February.

Telix Pharma, based in Australia, also made public its plans for an IPO on Friday. Although the financial specifics remain undisclosed, the company aims to bolster its clinical development efforts through the raised capital. Telix already markets a product, Illuccix, a PET scan agent for prostate cancer that targets the PSMA protein on cancer cells throughout the body, potentially enabling more accurate tumor detection.

Proceeds from Telix’s IPO will be directed towards advancing several late-stage therapeutic candidates. These include a Phase III trial for TLX250, a radio-antibody drug conjugate for advanced metastatic kidney cancer, and a Phase II/III trial of TLX101 for glioblastoma, with an eye on conditional approval or swift progression to a pivotal Phase III. Additionally, Telix plans to seek an expanded label for Illuccix.

The biotech IPO market showed signs of revival in the first quarter of 2024, with ten companies going public. However, some of these shares have since depreciated, leading to increased investor skepticism. Experts predict that IPO activity in the biotech sector will remain below the annual average of 50 IPOs.

How to obtain the latest research advancements in the field of biopharmaceuticals?

In the Synapse database, you can keep abreast of the latest research and development advances in drugs, targets, indications, organizations, etc., anywhere and anytime, on a daily or weekly basis. Click on the image below to embark on a brand new journey of drug discovery!