Oct 26 (Reuters) – Drug developers Aspen Neuroscience and Bambusa Therapeutics launched their US initial public offering roadshows on Monday, adding to a wave of issuers from the biotech industry that have tapped the fall IPO window.
The sector has been a bright spot in an otherwise lackluster fall IPO window this year, as rising borrowing costs and choppy market conditions keep a lid on activity from other industries.
More than half a dozen biotech firms have gone public in New York since September. Drug developers Rezera and Windward Bio also unveiled their US IPO filings last week, a key step ahead of a potential roadshow launch.
“Biotech offers investors opportunities where clinical catalysts can drive returns even when the broader economic outlook is uncertain, giving specialist investors reasons to back individual companies despite higher rates,” IPOX associate Lukas Muehlbauer told Reuters.
“Strong debuts from some recent listings also helps to encourage the next group of issuers, particularly those seeking funding for upcoming trials. Still, investor appetite remains selective, as higher financing costs remain a challenge for companies that may be years away from generating revenue.”
San Diego, California-based Aspen is developing therapies for neurodegenerative diseases. Its lead product candidate, sasineprocel, is in an early-to-mid-stage trial to treat Parkinson’s disease.
Boston, Massachusetts-based Bambusa is developing drugs for immunological and inflammatory disorders. Its lead product candidate, BBT001, is in early-stage development to treat a type of dermatitis and other inflammatory skin diseases.
Aspen and Bambusa are each marketing 9.38 million shares in their IPOs priced between $15 and $17 apiece.
Leerink Partners, UBS Investment Bank, Piper Sandler, Stifel and Oppenheimer are underwriting Aspen’s offering, while BofA Securities, Evercore ISI, UBS Investment Bank and Cantor are handling Bambusa’s.
Aspen will list on the Nasdaq under the symbol “ASPE,” and Bambusa under “BBTX.”
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Maju Samuel)
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