Zenas, Bicara aim to raise $180M+ in separate IPOs for autoimmune, cancer research

Zenas Biopharma and Bicara Therapeutics are preparing for their Initial Public Offerings (IPOs) in the U.S. public markets, with both companies aiming to raise close to $180 million each, potentially increasing to around $209 million if underwriters exercise their options.

Zenas Biopharma has outlined its plan to offer 11.7 million shares of common stock, each priced between $16 and $18. Trading under the ticker "ZBIO," the company expects to generate net proceeds of approximately $180.7 million, which could rise to $208.6 million if underwriters purchase an additional 1.7 million shares. Bicara Therapeutics, on the other hand, plans to release 11.8 million shares, each similarly priced between $16 and $18, and has applied to trade under the ticker "BCAX." This would allow Bicara to raise around $182 million and potentially up to nearly $210 million if an additional 1.76 million shares are sold.

Zenas intends to use around $100 million of its raised funds to support various studies for its sole asset, obexelimab. This includes ongoing phase 3 trials for immunoglobulin G4-related disease, phase 2 trials for multiple sclerosis and systemic lupus erythematosus (SLE), and a phase 2/3 study for warm autoimmune hemolytic anemia. The remaining funds are earmarked for the anticipated commercial launch of obexelimab in the U.S. and Europe, as well as for general corporate purposes and working capital. Obexelimab, which targets CD19 and FcγRIIb, mimics the natural antigen-antibody complex to block a broad population of B-cells. Zenas believes that this bifunctional antibody can achieve better outcomes through chronic dosing compared to existing drugs. Originally licensed from Xencor, obexelimab had failed a phase 2 trial in SLE but showed promise in an intent-to-treat analysis and in individuals with higher antibody levels and specific biomarkers. Bristol Myers Squibb has the rights to obexelimab in several Asian countries and Australia, having paid $50 million upfront for these rights a year ago.

Zenas Biopharma has also raised $200 million from a series C financing round in May, with its founder, Lonnie Moulder, attributing their decision to stay private to the challenging IPO market conditions at the time.

Bicara Therapeutics plans to use the majority of its IPO proceeds to develop ficerafusp alfa for head and neck squamous cell carcinoma (HNSCC). This includes funding a pivotal phase 2/3 trial to support a biologics license application. Ficerafusp alfa, which targets EGFR and TGF-β, is already being studied in conjunction with Merck & Co.’s Keytruda as a first-line treatment for recurrent or metastatic HNSCC. In an initial study involving 39 patients, over half (54%) showed an overall response. Bicara plans to commence a 750-patient pivotal trial by the end of the year, with an endpoint readout on the overall response rate expected in 2027. Additionally, some IPO funds will be directed towards researching the drug in other HNSCC patient populations and other solid tumors, as per the company's SEC filing. Bicara also intends to allocate funds for general corporate purposes and working capital.

Most recently, Bicara secured $165 million in a series C funding round towards the end of last year. The company has backing from global asset manager TPG and Indian pharmaceutical company Biocon, among other investors.