Upstream Aims to Compete with Amgen and AstraZeneca Asthma Treatment through 5M Initial Public Offering

Upstream Aims to Compete with Amgen and AstraZeneca Asthma Treatment through 5M Initial Public Offering

Upstream Aims to Compete with Amgen and AstraZeneca Asthma Treatment through 5M Initial Public Offering

Dive Brief:

  • Upstream Bio revealed on Thursday that it has officially priced its initial public offering, raising a substantial 5 million to propel the development of its antibody drug targeting various respiratory diseases.
  • The Waltham, Massachusetts biotech firm sold a total of 15 million shares at  each, significantly surpassing the projections set earlier in the week. Trading on the Nasdaq stock exchange will commence on Friday morning with the ticker symbol “UPB.”
  • This IPO was part of a dual offering priced on Thursday, with the other being a million stock sale by Camp4 Therapeutics, a developer of RNA drugs. According to data from BioPharma Dive, there have now been seven biotech IPOs since mid-September, marking the most active period this year.

Dive Insight:

The successful IPO of Upstream underscores growing investor interest in immune drug research.

In 2024, six immunology-focused companies have launched IPOs, the highest count outside oncology, marking the most active year for this sector since 2021. In that year, merely seven out of 104 companies that went public concentrated on anti-inflammatory treatments, based on BioPharma Dive data.

Upstream’s IPO mirrors a trend where companies with advanced drug trials are successfully entering the stock market. Of the 22 IPOs recorded in 2024, the majority — including nine of the top ten — are from firms with drugs in Phase 2 or beyond. This aligns with an investment bank William Blair report discussing a “flight to quality,” indicating that investors prefer companies with established proof-of-concept and imminent study results.

Upstream has acquired such data, with expectations to present Phase 2 findings on chronic rhinosinusitis in late 2025, followed by asthma mid-study results the next year, as detailed in their IPO filing.

The investigational drug, verekitug, targets TSLP, a protein involved in inflammatory responses to allergens. Initially developed by Astellas Pharma, work ceased during a strategic review. Upstream acquired verekitug in an auction as part of a 0 million Series A funding round in October 2021 and has since prioritized the drug.

By focusing on verekitug, Upstream is leveraging a well-known target. Amgen and AstraZeneca’s Tezpire, which also influences TSLP, received approval in 2021 for asthma. Meanwhile, startups like Uniquity Bio and Aiolos Bio have developed competing drugs. Notably, Aiolos and Proteologix have even been acquired by larger pharmaceutical companies.

Verekitug functions differently from Tezpire, as it binds to the TSLP receptor rather than a related ligand. Upstream claims that verekitug may offer increased potency and less frequent dosing intervals compared to Tezpire, which is administered every four weeks. Currently, Upstream is testing dosing intervals of 12 and 24 weeks in ongoing Phase 2 studies.

Before this IPO, Upstream secured roughly 0 million in private investments from notable investors including Enavate Sciences, Venrock Capital, and Bain Capital Life Sciences. OrbiMed, the largest shareholder, owns a 13% stake based on the IPO filing.

The IPO launch coincides with a notably busy week for public offerings. As reported by IPO research organization Renaissance Capital, ten companies were anticipated to price their offerings by Friday. Overall, the U.S. has seen 111 IPOs in 2024, a 34% increase compared to last year.