As newly public biotechs stumble out of gate, 89bio, Centogene join IPO queue

89bio and Centogene B.V. filed on Friday to go public on NASDAQ in a week that saw two high profile offerings encounter headwinds after their debuts on the exchange.

NASH company 89bio Inc. proposed to raise up to $70 million in an offering underwritten by BofA Merrill Lynch, SVB Leerink, RBC Capital Markets and Oppenheimer.

The company’s lead candidate, BIO89-100, is a glycopegylated analog of the metabolic hormone FGF21, which it thinks can address both the underlying pathology of fatty liver and the metabolic syndrome issues associated with non-alcoholic steatohepatitis (see “89bio: Standing Out in the NASH Crowd”).

89bio is enrolling NASH patients and patients with non-alcoholic fatty liver disease at risk for NASH in a Phase Ib/IIa trial evaluating BIO89-100. A Phase II trial in severe hypertriglyceridemia is planned for 1H20.

OrbiMed Advisors holds the largest stake in the company with 41.2% of shares before the offering. Other investors with a greater than 10% stake are Longitude Venture Partners, RA Capital and Pontifax.

Also looking to make its public debut is Centogene B.V., a genetic testing company building a repository of rare disease data that it uses to develop diagnostics and biomarkers. The company also partners with pharmas to use the data for patient stratification and monitoring.

The company proposed to raise up to $69 million in an offering underwritten by SVB Leerink, Evercore ISI, Baird and BTIG.

Shareholders with more than a 10% stake are DPE Deutsche Private Equity, Equicore Beteiligungs GmbH and Careventures.

The companies join a biotech IPO stocked with offerings looking to list ahead of anticipated volatility during the 2020 U.S. election year (see “Biotechs Likely to Flood IPO Market”).

BioNTech SE (NASDAQ:BNTX) and Vir Biotechnology Inc. (NASDAQ:VIR) stumbled out of the gate this week after pricing IPOs. Vir priced its offering within its proposed range late Thursday, and then tumbled 30% in its first day of trading. Vir’s listing came one day after BioNTech SE (NASDAQ:BNTX) settled for a post-IPO valuation about $1 billion lower than it sought; its shares finished the week off about 8% (see “Vir’s Aftermarket Weakness Adds to Skittishness for IPO Queue”).

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