Most cancers drug developer ArriVent BioPharma has a lead program with the potential to deal with lung cancers characterised by sure uncommon mutations. A pivotal examine is underway and the biotech now has $175 million in IPO money to proceed the small molecule’s scientific growth.
Late Thursday, ArriVent priced its providing of greater than 9.7 million shares at $18 every, which was the midpoint of its focused value vary. These shares will commerce on the Nasdaq beneath the inventory image “AVBP.” It’s the second IPO of this week, following the $380 million inventory market debut of CG Oncology.
Whereas it’s a stretch to name two IPOs a development, the rising IPO queue suggests enhancing situations for public choices. In a current report describing the outlook for enterprise capital in 2024, PitchBook mentioned optimistic financial indicators of 2023 will spur a comeback in IPOs within the coming yr. These indicators embody a rise in gross home product, no rate of interest hikes from the Federal Reserve since final July, and slowing of inflation. The report additionally notes a downward development in market volatility.
“Assuming volatility stays tempered in 2024, this might act as a catalyst for brand spanking new IPO filings,” PitchBook mentioned. “Decreased volatility tends to foster a extra steady and favorable market surroundings, which is enticing to each issuers and traders.”
Not like the go-go days of 2021 and 2022 IPOs, newer biotech IPOs have been from corporations with not less than some scientific knowledge to cut back investor threat. That development turned obvious within the few biotech IPOs of final yr. ArriVent can level to scientific knowledge that cut back the danger for its lead drug candidate furmonertinib, which belongs to the category of most cancers medicine known as tyrosine kinase inhibitors.
Furmonertinib was designed to deal with non-small cell most cancers (NSCLC) with EGFR mutations. Newtown Sq., Pennsylvania-based ArriVent is growing its drug particularly for rarer EGFR exon 20 insertion mutations, which the corporate says are underserved by at the moment accessible therapies. Within the IPO submitting, the corporate mentioned it believes its drug has the potential to retain lots of some great benefits of third-generation EGFR tyrosine kinase inhibitors, together with the potential to beat sure mutations that confer drug resistance, whereas additionally concentrating on a broader set of EGFR mutations.
ArriVent will not be the one firm that has pursued EGFR exon 20 insertion mutations. Takeda Pharmaceutical steered the capsule Exkivity to a 2021 accelerated approval. Nevertheless, the drug failed its confirmatory examine final yr, and the Japanese drugmaker agreed to voluntarily withdraw the product from the market. Johnson & Johnson’s Rybrevant gained its accelerated approval in 2021. Intravenously infused Rybrevant succeeded in its confirmatory examine and J&J is now searching for to transform the drug’s standing to full FDA approval.
ArriVent contends there’s room for enchancment on the Takeda and J&J merchandise. Within the submitting, the corporate mentioned these medicine don’t sufficiently penetrate the mind, which is a needed functionality for treating most cancers that has metastasized to the mind. ArriVent additionally goals to supply higher security and tolerability, including that furmonertinib, formulated as a once-daily capsule, can be much less burdensome to sufferers in contrast with the IV-infused Rybrevant.
ArriVent is testing furmonertinib in a world Part 3 scientific trial evaluating the drug as a first-line therapy for non-squamous domestically superior or metastatic NSCLC with exon 20 insertion mutations. The drug will probably be in comparison with pemetrexed, the chemotherapy that’s at the moment the usual first-line therapy for these cancers. The principle purpose is to measure progression-free survival; preliminary knowledge are anticipated in 2025. A Part 1 take a look at can also be underway testing furmonertinib in sufferers with P-loop and-alpha-c-helix compressing (PACC) mutations, one other unusual mutation.
ArriVent shaped in 2021, backed by $90 million in financing to assist a enterprise mannequin of securing rights to drug candidates from rising markets that may very well be developed and commercialized in Western markets. Most cancers is its preliminary focus. Furmonertinib, which is already accredited in China, was licensed from Shanghai-based Allist Pharma. ArriVent holds rights to the molecule exterior of China.
ArriVent reported a $166.3 million money place as of the top of the third quarter of 2023. The corporate plans to use a lot of the IPO money towards furmonertinib. It has budgeted between $50 million and $60 million to assist growth of the lead drug candidate for NSCLC with EGFR mutations, based on the submitting. One other $30 million to $40 million is deliberate for growth of the drug in NSCLC characterised by PACC mutations.
The ArriVent pipeline additionally features a preclinical antibody drug conjugate. Within the submitting, the corporate mentioned it expects to pick a lead candidate for this program in late 2024 or early 2025.
In the meantime, the IPO queue continues to develop. Different corporations which have filed IPO paperwork this month embody Alto Neuroscience, Metagenomi Applied sciences, and Kyverna Therapeutics.
Photograph: Stephanie Keith/Bloomberg, by way of Getty Photographs
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