Retension Pharmaceuticals, TRex Bio file for US IPO as biotech momentum continues
XLV•Biotech IPO pipeline continues to build
Sept. 18 (Reuters) - Drug developers Retension Pharmaceuticals and TRex Bio filed their paperwork for U.S. initial public offerings on Friday, reinforcing the biotech pipeline for the fall IPO window.
The listings would be the latest in a string of biotech IPOs this year, which analysts say has been supported by a wave of acquisitions by large drugmakers.
They will also add breadth to the IPO pipeline for the fall window, which has kicked off on a shaky note.
TRex Bio's lead program and Lilly backing
South San Francisco, California-based TRex is developing medicines to restore immune balance and promote tissue repair in patients with autoimmune and inflammatory diseases.
Its most advanced product candidate, TRB-061, is being developed in an early-stage clinical trial for a variety of autoimmune and inflammatory diseases. Data from the trial is expected in mid-2027.
Drugmaker Eli Lilly LLY.N plans to invest in TRex's IPO, according to its prospectus.
Analysts say biotech listings may hold up better
"Biotech IPOs tend to be more resistant to the macro headwinds affecting other sectors, like the Iran war or AI disruption," said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs.
Drug developer Electra Therapeutics ETRA.O debuted on Friday after raising $350 million in an upsized U.S. IPO. Its shares closed down 11.7%.
Kennedy said biotech IPOs will come under more scrutiny given Electra's decline.
"They may no longer get a free pass. But broadly speaking, this sector has been a winner for IPO investors," he added.
