Zenas BioPharma, Bicara Therapeutics sets IPO price ranges as summer lull ends

By Steve Gelsi

Bristol-Myers Squibb, Xencor are shareholders of immunology-focused Zenas

Zenas BioPharma Inc. and Bicara Therapeutics Inc. on Friday both set estimated price ranges in their initial public offerings in a sign that the traditional summer lull in deals is coming to an end.

The pair of IPOs would raise about $200 million each as the companies embark on road show meetings with prospective Wall Street investors ahead of their trading debuts.

The IPO market has been mostly quiet for major stock debuts since late July's kickoff of Lineage Inc. (LINE).

Zenas BioPharma, a Waltham, Mass.-based developer of immunology-based therapies, on Friday said it plans to offer 11.76 million shares of common stock at an estimated price range of $16 to $18 in its upcoming initial public offering.

At the midpoint of the range, Zenas BioPharma will raise about $200 million with underwriters Morgan Stanley, Jefferies, Citigroup and Guggenheim Securities.

Zenas BioPharma plans to trade on the Nasdaq under the symbol "ZBIO."

The company said it will have 40.08 million shares of common stock outstanding if underwriters exercise their over-allotment option in full.

Based on the midpoint of its IPO's estimated price range, Zenas BioPharma's market capitalization will be about $681 million.

Zenas BioPharma is currently developing immunology and inflammation medicine called obexelimab, a bifunctional monoclonal antibody.

It's conducting trials of obexelimab to treat immunoglobulin G4-related disease (IgG4-RD), multiple sclerosis, systemic lupus erythematosus and warm autoimmune hemolytic anemia.

The company plans to use proceeds of the IPO in its Phase 3 trial for patients with IgG4-RD, among other efforts.

Principal shareholders of Zenas BioPharma include Xencor Inc. (XNCR), Enavate Sciences, SR One Capital Management, and Bristol-Myers Squibb Co. (BMY)

Leon O. Moulder, Jr., is founder, chairman and chief executive officer of Zenas BioPharma, as well as managing member of Tellus BioVentures LLC, an early-stage life sciences investment fund.

Moulder also co-founded and was chief executive of Tesaro, a Boston-based oncology-focused biopharmaceutical company that was sold to GlaxoSmithKline (GSK) in 2019 for about $5 billion.

Bicara sets $16-$18 price range

Meanwhile Bicara Therapeutics Inc., a Boston-based biopharmaceutical company focused on bifunctional therapies for patients with solid tumors, plans to offer 11.77 million shares at an estimated price range of $16 to $18 a share.

The company plans to trade on the Nasdaq under the symbol "BCAX."

At the midpoint of the range, Bicara will raise about $200 million with underwriters Morgan Stanley, TD Cowen, Cantor and Stifel.

Principal shareholders of Bicara include india's Biocon Ltd. (IN:532523) and RA Capital Management LP.

Bicara said it plans to have 47.79 million shares outstanding if underwriters fully exercise their option to purchase additional shares of common stock.

Based on an IPO price of $17 a share, which is the midpoint of its estimated price range, Bicara's market cap will be about $812 million.

Claire Mazumdar, chief executive of Biocan since 2020, was formerly head of business development and corporate strategy at Rheos Medicines Inc. , a biopharmaceutical company that formed a multi-target discovery partnership with Roche (CH:ROG).

-Steve Gelsi

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09-06-24 0755ET

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