BioTech company raises $161M in IPO
Structure Therapeutics, a clinical-stage global biopharmaceutical company based in San Francisco, has completed an initial public offering (IPO) in the space, raising $161.1 million in the process.
Structure Therapeutics is currently developing novel oral small molecule therapeutics for metabolic and pulmonary diseases. The company is pursuing treatments that could target diabetes and obesity in a pill form. Its oral drugs could upset the new popularity of injectible semaglutide medications that treat obesity and diabetes.
The successful IPO comes at a time when these types of financialBiopharma and biotech companies have seen weak IPO activity as of late. A report from Evaluate Vantage revealed the second quarter of 2022 was the weakest biotech IPO activity in more than five years, both in terms of deal value and volume.
Structure Therapeutics announced 10,740,000 American depositary shares (ADSs), each representing three ordinary shares, at a public offering price of $15.00 per ADS. The shares began trading on the Nasdaq Global Market on February 3, 2023 under the ticker symbol “GPCR.” And the offering is expected to close Feb. 7, 2023.
The ticker indicates the company’s aims, as GPCR stands for G-protein-coupled receptors, which are “cell surface receptors act like an inbox for messages in the form of light energy, peptides, lipids, sugars and proteins,” according to Nature. GPCRs are a huge area in medicine, and it is estimated between one-half and one-third of all marketed drugs work by binding to GPCRs.
Structure Therapeutics is currently focused on GPCRs. In particular, the company is focused on the 220 GPCRs that have not yet been targeted as clinical targets. There are more than 475 drugs on the market acting at over 100 unique GPCRs, Structure Therapeutics said, meaning the biotech startup sees potential in the more complex, yet unexplored GPCRs.
“We believe the strengths of our platform position us to develop oral small molecule drugs that can deliver biologic-like activity and specificity,” the SEC filing stated. “Oral small molecules can address many of the key limitations of biologic and peptide drugs, thereby significantly improving patient access. We believe this is particularly important for the most prevalent chronic diseases including those involving the metabolic, cardiovascular, and pulmonary systems.”
Structure Therapeutics is developing GSBR-1290, its oral small molecule product candidate targeting the validated glucagon-like-peptide-1 receptor, and has already completed its Phase 1 single ascending dose (SAD) study of GSBR-1290 in September 2022. In the Phase 1 study, GSBR-1290 was generally well tolerated and demonstrated dose-dependent pharmacokinetics, or PK, and pharmacological, or PD, activity, the company said in its filing. It is also developing GLP-1R, for the treatment of type-2 diabetes mellitus, or T2DM, and obesity.
The biotech company expects to report topline data for its Phase 1b study and Phase 2a study in the second half of 2023. However, acceptance of the drugs is still far in the future.
“Our platform has been designed to develop novel drugs against other targets where traditional drug discovery methods have not been adequate,” the company said in its IPO. “Given our early stage of development, it will take several years before we complete development and seek regulatory approval of any of our product candidates, if at all. Even if we are successful in obtaining regulatory approval and commercialization of any of our product candidates, there can be no assurance that we will obtain the same success as other approved drugs.”
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."