Behind Friday's $161M IPO: A star scientist, GPCR drug discovery and a plan to challenge pharma in diabetes

03 Feb 2023
endpts.com
Phase 1IPOPhase 2
What does it take to pull off a $161 million biotech IPO these days? In Structure Therapeutics’ case, it means having a star scientist co-founder paired with the computational drug discovery company Schrödinger, $198 million in private funding from blue-chip investors, almost six years of research work on G protein-coupled receptors and a slate of oral, small-molecule drugs, with an eye on the huge and growing diabetes and weight-loss market. On Friday, Structure’s shares will begin trading on the Nasdaq, after pricing at $15 a share late Thursday. In total the company raised $161 million after adding more shares to the offering amid what it called strong demand from investors. Known as ShouTi until last June, the biotech is headquartered in San Francisco and runs an office in Shanghai — a spread reflected in its pre-IPO private investor base, which features BVF Partners, Deep Track Capital, Eight Roads Ventures, F-Prime Capital Partners, Qiming Venture Partners and Sequoia Capital China. Structure Therapeutics’ drug discovery platform builds on the work of co-founder and CEO Raymond Stevens, who was credited for mapping the first human GPCR in 2007 while at Scripps Research. G protein-coupled receptors, or GPCRs, are a diverse family of proteins that sit on cell surfaces. While they’re popular drug targets, the company says there remain several challenges in pursuing new medicines against them, ones it hopes to overcome using techniques that Stevens and his team have worked on for decades. The first GPCR it’s going after is GLP-1R — which Structure hopes can spawn a franchise that can serve as a foundation for future programs in metabolic, cardiovascular and pulmonary diseases. Big Pharma companies have brought five peptide molecules targeting GLP-1R to the market approved to treat type 2 diabetes and obesity, collectively bringing in $13.2 billion in worldwide sales in 2020 and predictions of significant further growth. Those drugs are mostly injections, however, and Structure is chasing a small-molecule, oral drug. In its S-1 filing, it described how the experimental treatment, GSBR-1290, “demonstrated glucose-dependent insulin secretion and suppressed food intake, resulting in weight reduction.” The company completed a Phase 1 study in September 2022, it said. The IPO proceeds will fund a Phase Ib multiple dose-ascending study and a Phase II proof-of-concept study in type 2 diabetes. Topline data are expected later this year. Beyond the lead candidate, Structure has also lined up other next-gen GLP-1R candidates, including dual GLP-1R/GIPR agonistsGLP-1R/GIPR agonists. Other programs in the pipeline are similarly geared toward chronic diseases, including a preclinical APJR agonist for idiopathic pulmonary fibrosis and pulmonary arterial hypertension. Sequoia was the biggest shareholder prior to the IPO, claiming slightly more than 10% of the stock, followed by Biotechnology Value Fund, ERVC Healthcare, XX-I SHT Holdings, F-Prime, Qiming and Deep Track Biotechnology Master Fund, each owning between 6 to more than 9%. Stevens kept close to 4% of shares, as did his co-founder and CFO Jun Yoon (3.5%) and Schrödinger CEO Ramy Farid (4.20%). True to its science, the company has chosen an apt stock ticker: $GPCR .
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