Generate IPO meets goal, but shares sink in aftermarket: Public Equity Report

The year’s sixth and largest biotech IPO on NASDAQ thus far got off to a poor start on Friday, with shares of Generate Biomedicines falling 21% to $12.65. The company raised $400 million late Thursday, selling 25 million shares at the $16 midpoint of its range for a post-money valuation of about $2 billion.

Generate Biomedicines Inc. (NASDAQ:GENB) uses its AI-powered, computational Generate platform to identify promising biology and generate new therapies faster and cheaper than traditional drug discovery platforms. It has borne out that hypothesis with its first set of programs reaching clinical proof of concept in just three years. Generate’s lead program, GB-0895, is an anti-TSLP mAb in testing at twice-yearly dosing in a Phase III study to treat severe asthma. The company also expects to have Phase Ib data this half for the same molecule in chronic obstructive pulmonary disease (COPD)...