GPCR-focused Septerna raises US$288M in successful IPO

USA—Septerna, a U.S.-based biotech firm, has raised US$288 million in its initial public offering (IPO), marking a strong start in a challenging capital-intensive sector.

This IPO has already been upsized twice due to high demand and reflects positive investor sentiment.

Initially, Septerna planned to sell 10.9 million shares but increased this to nearly 15.3 million shares before settling on 16 million shares for US$18 each.

The firm’s valuation now stands around US$750 million, with backing from Goldman Sachs and Third Rock Ventures, demonstrating confidence in Septerna’s growth potential.

In the broader market, drug developers are enjoying substantial success this fall, with all IPOs above US$100 million since September seeing increased share offerings.

The successful IPOs of companies like Bicara Therapeutics, MBX Biosciences, BioAge Labs, and Upstream Bio further fuel interest in biotech listings.

 These positive debuts are seen as encouraging signs for future IPO candidates in the sector.

Septerna’s flagship development, SEP-786, aims to treat hypoparathyroidism, a condition marked by insufficient parathyroid hormone production that disrupts calcium balance in the blood and bones.

Currently in early-stage trials, the experimental treatment has generated anticipation, with initial data expected by mid-2025.

Alongside SEP-786, Septerna is building a pipeline of treatments targeting significant health concerns like immunology, metabolic diseases, and obesity.

 This diversity in their portfolio suggests potential for broader success, catering to several large medical markets.

Commenting on Septerna’s IPO, IPOX research analyst Lukas Muehlbauer noted that, while SEP-786 is still in early development, Septerna’s strategic focus on varied disease areas provides multiple paths toward commercialization.

This versatility, he added, aligns with investor trends favoring biotech companies with wide-ranging market potential.

Septerna specializes in developing therapies based on G-protein-coupled receptors (GPCRs), a class of proteins that plays a key role in transmitting chemical signals across cell membranes.

This approach is highly regarded, as GPCR-based treatments have the potential to effectively address a range of diseases by facilitating targeted cellular responses.

Goldman Sachs, which holds a 5.4% stake in Septerna, has indicated strong support, signaling confidence from established institutional investors.

 According to Muehlbauer, while investor enthusiasm for early-stage biotech firms is promising, it remains selective, often hinging on the quality of a company’s existing investors and the clarity of its commercial prospects.

Septerna will officially list on the Nasdaq under the ticker symbol “SEPN,” positioning itself as a notable addition to the current wave of biotech IPOs.