Septerna secures $288M in enlarged IPO for GPCR therapies

Nascent clinical biotech company Septerna added to the modest increase in IPO activities this fall with its $288 million Nasdaq listing announced on Friday. Investors showed a considerable interest in the GPCR-focused biotech, prompting the sale of an additional five million shares beyond the initial plan. The Bay Area startup priced its IPO debut at $18 per share, surpassing the high end of its projected range of $15 to $17. This led to a valuation of approximately $743 million based on its outstanding shares.

Septerna just entered the clinical stage last month with a Phase 1 study involving healthy volunteers for its drug SEP-786 in Australia. The company expects to gather data by mid-2025, after which it plans to conduct further studies in the US, Canada, Europe, and other regions, as stated in its IPO filings. Septerna aims to be the pioneer in developing an oral medication for hypoparathyroidism, a condition affecting around 100,000 individuals in the US that disrupts the body's regulation of calcium and phosphorus levels.

The rare condition of hypoparathyroidism has been a focal point for researchers and pharmaceutical developers in recent years. Takeda had withdrawn its drug Natpara from the market, Ascendis Pharma secured FDA approval for Yorvipath this summer, and AstraZeneca acquired a Phase 3 biotech for up to $1.05 billion this spring. In parallel, MBX Biosciences went public last month while it was in Phase 2 of its candidate development.

Septerna, which currently employs 68 people, also has plans to commence clinical trials with another oral small molecule aimed at treating chronic spontaneous urticaria, an inflammatory skin disease. Additionally, the company has broader ambitions to develop GPCR-targeted medications for type 2 diabetes and obesity, areas that have garnered significant attention and investment from large pharmaceutical companies and new biotech firms, largely due to the success of GLP-1 drugs.

The biotech company made its public debut in 2022, founded on Nobel Prize-winning research from GPCR pioneer Robert Lefkowitz. Septerna initially raised $100 million during its launch round and followed up with a $150 million Series B funding the following year. Its largest investors, each holding 5% or more of the company, include Third Rock Ventures, Samsara BioCapital, RA Capital, Deep Track, Invus, BVF, and Goldman Sachs’ West Street Life Sciences.

As of the end of June, Septerna had $143 million in working capital, according to its IPO documentation.