Janice R. Andrews
Septerna Inc. delivered a strong first-day performance on Nasdaq, with shares climbing 19% to close at $21.40 on Friday, well above its $18 initial offering price. The South San Francisco-based biotechnology company raised $288 million after expanding its share offering twice, ultimately selling 16 million shares at a premium to its initial target range.
The successful debut, which brought Septerna’s market value close to $900 million, reflects sustained investor appetite for biotech investments. The company specializes in creating oral small molecule therapeutics, targeting conditions across endocrinology, immunology, inflammation, and metabolic disorders.
The positive reception mirrors broader momentum in biotech public offerings, following recent market entries by CeriBell Inc. and Upstream Bio Inc. Biotech companies have already secured $3.9 billion through U.S. exchange IPOs in 2024, surpassing 2023’s $2.9 billion total. However, market performance has been mixed, with seven out of 18 new biotech listings currently trading under their initial offer prices.
A consortium of major financial institutions, including JPMorgan Chase, TD Cowen, Cantor Fitzgerald, and Wells Fargo, led the offering. Trading under the symbol SEPN on Nasdaq, Septerna’s successful launch adds to the growing wave of biotech IPOs this year.
