Septerna plans $157M IPO after launching GPCR pipeline in clinic

Septerna, a drug development company specializing in G protein-coupled receptor (GPCR) drugs, is set to generate approximately $157 million from its planned initial public offering (IPO), as indicated in a new securities filing on Monday. This IPO on Nasdaq is projected to extend the company's operational funds until 2027, providing an overall capital sum of about $294 million. Septerna aims to offer 10.93 million shares priced between $15 and $17 each, per the Securities and Exchange Commission (SEC) documentation. The company, based in the Bay Area, first announced its intention to go public on October 2.

Septerna’s public debut is anticipated to occur just before the upcoming US presidential election, a period when no other significant biotech startups are scheduled for IPOs. The market has been relatively inactive since a series of IPOs last month and earlier in October, featuring companies such as Upstream Bio, CAMP4 Therapeutics, and MBX Biosciences.

Septerna is exploring treatments for rare endocrinology conditions, including hypoparathyroidism, an area that has seen increased activity recently. This summer, Ascendis received approval for its drug Yorvipath, and AstraZeneca acquired Amolyt Pharma, indicating heightened interest in this field. Septerna claims to be the first to develop an oral treatment candidate for hypoparathyroidism to enter human trials.

In September, Septerna began Phase 1 clinical trials in Australia, involving up to 180 healthy adult volunteers to test once-daily and twice-daily dosing of its leading drug candidate, SEP-786. The company expects to have data by mid-2025 and plans to proceed to Phase 1 trials in the United States and selected international locations, including Europe and Canada.

In addition to its hypoparathyroidism treatment, Septerna is developing an oral small molecule for chronic spontaneous urticaria (CSU), an inflammatory skin disease. The company has initiated studies to enable an investigational new drug (IND) application for this experimental therapy. Septerna also has aspirations to enter the fields of obesity and type 2 diabetes, although these programs are in the early stages and not expected to progress soon.

Septerna was founded with $100 million in 2022, building on research conducted in the lab of Nobel Prize-winning GPCR expert Robert Lefkowitz. In mid-2023, the startup secured an additional $150 million in Series B funding. Major investors in Septerna, each owning at least 5% of the company, include Third Rock Ventures, Samsara BioCapital, RA Capital, Deep Track, Invus, BVF, and Goldman Sachs’ West Street Life Sciences. The company currently employs 68 people.