Reuters: IPOX® Analyst Lukas Muehlbauer on Upstream Bio’s IPO Debut
In a recent Reuters article, IPOX® Research Analyst Dr. Lukas Muehlbauer discussed the strong debut of Upstream Bio (UPB.O) in the IPO market. The Waltham, Massachusetts-based drug developer saw its stock rise 26.5% above the IPO price, giving it a market value of $1.05 billion. Upstream raised $255 million by selling 15 million shares, after upsizing its offering by 20% due to high demand and pricing at the top of its $15-$17 range.
Upstream’s lead drug, verekitug, is currently in mid-stage trials for the treatment of severe asthma and chronic rhinosinusitis with nasal polyps (CRSwNP). The company expects to report data from these trials in 2025 and 2026. Investor interest in Upstream is driven by the potential of verekitug to become a best-in-class therapy for severe asthma, with additional plans to explore its use in treating chronic obstructive pulmonary disease (COPD).
This IPO adds momentum to the healthcare sector, which is leading the U.S. IPO market in 2024. Healthcare IPOs have raised $6.6 billion year-to-date, making up 23% of total U.S. IPO proceeds. Muehlbauer noted that the growing investor appetite for healthcare companies could sustain the strong biotech IPO market into 2025.
Other healthcare companies, such as CAMP4 Therapeutics and CeriBell, also saw positive debuts on the same day.
