Kyverna Therapeutics Inc shares rose as much as 59 percent in early trading on Thursday after its expanded US initial public offering (IPO) raised US$319 million, as drug developers continue to receive a warm welcome from new investors.
Emeryville, California-based Kyverna’s shares gave back some of those gains to end the session at US$30 each in New York, 36 percent above the IPO price of US$22.
At that price, the Bain Capital LP-backed biotechnology company has a market value of about US$1.2 billion.
The opening surge was the biggest for a company raising more than US$100 million in an IPO since Cava Group Inc’s US$365 million debut in June last year, according to data compiled by Bloomberg.
Kyverna had a tough time deciding who to allocate shares to given “very large mutual funds were willing to come into the story and wanted to be part of” the deal, chief executive officer Peter Maag said in an interview. The IPO was about “20-times oversubscribed,” he said.
“This is a tremendous outcome for the organization as it gives us the capital to execute our clinical trial program,” Maag said.
The funds are expected to provide a runway into 2026 and set it up for potential pivotal trials, he said.
The strong results continue a streak of therapeutics companies drawing heightened investor demand.
The offering is the second-largest for a drug developer this year, after cancer-focused CG Oncology Inc raised US$437 million two weeks ago, according to data compiled by Bloomberg. Its shares have more than doubled since its debut.
Kyverna’s lead medicine is a CAR T-cell therapy for autoimmune diseases in rheumatology and neurology. Bain Capital, Gilead Sciences Inc, Vida Ventures LLC and Westlake BioPartners LLC are among Kyverna’s largest investors, according to the company’s filings with the US Securities and Exchange Commission.
Kyverna is part of a busy week for US IPOs that includes American Healthcare REIT Inc, which raised US$672 million and is up nearly 10 percent, and a Mexican grocery chain. Also in biotech, Moderna Inc-backed Metagenomi Inc’s offering was slated to price later on Thursday.
HSBC Innovation Banking managing director Jonathan Norris expects about 25 venture capital-backed biotech IPOs in the US and Europe this year.
There will be “more later-stage than earlier companies with a focus on drugs that have opportunities for catalysts in the near-term,” Norris said.
Drug developers have been actively raising cash through sales of new shares to public investors this year.
The industry has raised nearly US$5 billion via follow-on offerings, data compiled by Bloomberg showed, more than double the amount seen through Feb. 7 last year.
Taiwan Semiconductor Manufacturing’s (TSMC, 台積電) first wafer fab in Kumamoto, Japan is still set to launch commercial production in the fourth quarter of this year as planned, the world’s largest contract chipmaker said on Saturday in response to reports that mass production might begin ahead of schedule. TSMC said the monthly production capacity of the joint venture fab, Japan Advanced Semiconductor Manufacturing (JASM), is expected to hit 55,000 units of 12-inch wafers, using the mature 12-nanometer, 16-nanometer, 22-nanometer and 28-nanometer processes. JASM is owned by TSMC and its Japanese business partners Sony Semiconductor Solutions Corp and Denso Corp, with the Taiwanese company
US President Joe Biden’s administration is in talks to confer more than US$10 billion in subsidies to Intel Corp, people familiar with the matter said, in what would be the largest award yet under a plan to bring semiconductor manufacturing back to US soil. Intel’s award package is expected to include both loans and direct grants, the source said. They stressed that negotiations are still under way. The US Department of Commerce and Intel declined to comment. The incentives would come from the 2022 Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act, which set aside US$39 billion in direct grants as
A new artificial intelligence (AI) tool that promises to create short videos from simple text commands has raised concerns along with questions from artists and media professionals. OpenAI, the creator of ChatGPT and image generator DALL-E, on Thursday said it was testing a text-to-video model called “Sora” that can allow users to create realistic videos with simple prompts. The San Francisco-based start-up said that Sora can “generate complex scenes with multiple characters, specific types of motion, and accurate details of the subject and background,” but added that it still has limitations, such as possibly “mixing up left and right.” Examples of Sora-created clips
Super Micro Computer Inc’s lengthy rally came to a shuddering halt on Friday, with a selloff that derailed what had looked to be the server maker’s best week on record. Shares fell 20 percent, their biggest one-day percentage drop since August last year. The decline comes in the wake of a nine-session run of gains, the longest such streak for the stock since 2016. However, even with the day’s selloff, the stock rose 8.5 percent for the week. Despite Friday’s drop, recent gains show how Super Micro has become one of the hottest names in artificial intelligence (AI). The stock has risen