ArriVent Biopharma Seeks to Net Over $156M Potentially in IPO
22 Jan 2024
IPOADC
Pictured: Front view of the Nasdaq building in New York City/iStock, hapabapa
Initial public offering activity continues to perk up early in the new year with ArriVent Biopharma unveiling its plans to net over $156 million in its IPO, according to the company’s SEC documents filed Monday.
The biotech will offer over eight million shares of its common stock, priced between $17 and $19 per share. If the IPO is priced at $18 per share, it expects to net $135.7 million or potentially as much as $156.7 million if underwriters purchase additional shares. The company will trade on the Nasdaq under the ticker symbol AVBP.
ArriVent plans to leverage the cash from the IPO for several purposes. According to the SEC filing, the company intends to use between $50 million and $60 million for its NDA approval of furmonertinib, its cancer treatment which is being developed as a first-line treatment for patients with non-small cell lung cancer (NSCLC).
In addition, ArriVent wants to use $30 million to $40 million to support the development of the drug for NSCLC patients with PACC mutations and another $5 million to $10 million to develop the drug in combination with SHP2i in NSCLC with classical EGFRm. Another $5 million to $10 million will also go towards developing its antibody-drug conjugate (ADC) collaboration with Aarvik.
While ArriVent said that the IPO will provide the company with a cash runway into 2026, the offering “will not be sufficient” to complete the development and commercialization process for all its candidates and will need to raise “substantial additional capital” in the future.
“Although we currently anticipate using the net proceeds from this offering as described above, there may be circumstances where a reallocation of funds is necessary. It is difficult to estimate with certainty the exact amounts of the net proceeds from this offering that may be used for the above purposes,” the company’s SEC filing stated.
ArriVent detailed some of its IPO plans earlier this year, while Moderna-backed Metagenomi announced its plans to go public. However, ArriVent isn’t the only company looking to enter the public markets as a flurry of biotechs has started in 2024 with planned IPOs.
Last week, CG Oncology revealed that it looks to secure over $200 million in its IPO. At the same time, neurology biotech Alto Neuroscience and CAR-T company Kyverna Therapeutics also announced their respective plans to launch public offerings.
Tyler Patchen is a staff writer at BioSpace. You can reach him at tyler.patchen@biospace.com. Follow him on LinkedIn.
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