BridgeBio takes crown for biggest biotech IPO of 2019, as fellow unicorn Adaptive raises offering size and price
BridgeBio Pharma and Adaptive Biotechnologies have not just upsized IPO offerings — the pair of unicorns have also raised their offering prices above the range, hauling in a combined $648.5 million.
Neil Kumar’s BridgeBio Pharma, founded in 2015, has a stable of companies focused on diseases that are driven by defects in a single gene — encompassing dermatology, cardiology, neurology, endocrinology, renal disease, and ophthalmology — and cancers with clear genetic drivers. The startup mill birthed a plethora of firms such as Eidos, Navire, QED Therapeutics and PellePharm, which function as its subsidiaries.
The Palo Alto, California-based company now has 16 programs, of which 4 are in or approaching late-stage development. The company, in which KKR owns a 10% stake, raised about $299 million in a fresh round of financing in January.
After enhancing the number of shares in its IPO to 20 million from 15 million, priced at a range between $14 to $16, to raise roughly $300 million — BridgeBio was able to push the price to $17 per share. This brings the company’s proceeds to the neighborhood of $348.5 million as it debuts on the Nasdaq on Thursday under the symbol $BBIO — surpassing the biggest IPO haul this year by Gossamer Bio. Last year, Moderna Therapeutics set an industry record with a $604 million IPO.
Once the stock hit, things began to get very interesting. The stock opened at $30, rose, fell and as of early afternoon was trading up 65%.
Immunosequencing company Adaptive Biotechnologies, which already has two commercial products, also lifted its IPO expectations on Wednesday.
Originally, Adaptive was looking to raise $200 million by offering 12.5 million shares at a price range of $15 to $17. The company, set to debut on Thursday on the Nasdaq under the symbol $ADPT, has now raised $300 million by offering 15 million shares for $20 per share.
They did even better than BridgeBio after the open. In early afternoon the stock was up 95%, trading above $28 a share.
The company was created in 2009 on the basis of technology developed by Harlan Robins at the Fred Hutch Cancer Research Institute. Robins, who serves as Adaptive’s chief scientific officer, spawned the company with his brother Chad Robins, and the two are set to target what they estimate is a $48 billion market opportunity which encompasses reading the genetic code of individual patients’ immune systems to tailor treatments.
Last year, the Seattle-based company joined forces with Microsoft, to develop a product designed to enable early detection of various diseases with a single blood test. It also has another big-ticket pact with Roche’s Genentech, which paid $300 million in cash and up to $1.8 billion in milestones to isolate T cell receptors that can target neoantigens produced by a tumor.
Social image: Neil Kumar. Endpoints