MBX Biosciences seeks up to $482.5 million valuation in US IPO

(Reuters) – MBX Biosciences, which is developing peptide therapies for treating endocrine and metabolic disorders, including obesity, said on Monday it was seeking a valuation of up to $482.5 million in its initial public offering in the United States.

WHY IT’S IMPORTANT

Weight-loss drug makers have caught the attention of investors and secured backing from venture capital heavyweights after proving to be an effective obesity treatment.

Wall Street estimates annual global sales of $150 billion for weight-loss drugs by the early 2030s.

MBX is developing therapies that target endocrine and metabolic disorders, including diabetes and obesity.

Last week, obesity therapy-focused startup BioAge Labs also filed to go public.

CONTEXT

The biotech’s lead experimental candidate, MBX 2109, is being developed to treat chronic hypoparathyroidism, a condition in which the body produces insufficient levels of parathyroid hormone that disrupts calcium levels in the blood and bones.

MBX 2109 is currently being developed in a mid-stage study and the company said it expects to report data from the trial next year.

The company is also developing MBX 4291, an experimental therapy for the treatment of obesity. The therapy mimics the effect of two gut hormones, GLP-1 and GIP, and is currently in preclinical development.

Eli Lilly (NYSE:)’s tirzepatide, sold as Zepbound for weight loss and Mounjaro for diabetes in the U.S., also mimics the function of these two gut hormones.

The proposed offering comes a month after MBX raised $63.5 million in a funding round led by investment firm Deep Track Capital.

BY THE NUMBERS

MBX is aiming to raise up to $136 million by offering 8.5 million shares at a price range of $14 and $16 each.

WHAT’S NEXT

MBX will be listed on the Nasdaq Global Select Market under the symbol “MBX”.

J.P. Morgan, Jefferies, Stifel and Guggenheim Securities are underwriting the offering.