Upstream Bio, a biotechnology company focused on developing therapies for inflammatory diseases, has successfully launched its initial public offering (IPO) on Nasdaq, raising $255 million. The company issued 15 million shares at a price of $17.00 each. Trading commenced on Friday under the ticker UPB.
IPO Details and Market Response
The IPO saw a positive market response, with the share price increasing to $22.00 on the first day of trading, representing a 29.4% surge. This placed the company's valuation at approximately $1.1 billion. HBM Healthcare Investments, which had invested $30 million in Upstream Bio across two funding rounds since 2021, now holds around 2.7 million shares, valued at approximately $59.7 million post-IPO.
Verekitug (UPB-101): Targeting TSLP for Inflammatory Conditions
Upstream Bio's lead product, verekitug (also known as UPB-101), is an antagonist targeting thymic stromal lymphopoietin (TSLP), a key cytokine involved in inflammatory responses. The therapy is currently undergoing Phase 2 clinical trials for the treatment of severe asthma and chronic rhinosinusitis with nasal polyps. The company also intends to investigate verekitug's potential in treating chronic obstructive pulmonary disease (COPD).
Clinical Data and Development Plans
Earlier Phase 1 studies of verekitug have demonstrated a reduction in inflammatory biomarkers, rapid treatment effects, and good tolerability. These promising results have paved the way for the ongoing Phase 2 trials. The funds raised from the IPO will be used to advance the clinical development of verekitug and to explore its efficacy in additional inflammatory conditions.
Leadership and Strategic Focus
Upstream Bio is led by CEO Rand Sutherland, who joined the company in April. Sutherland previously served as CEO of Seeker Biologics and President of Translate Bio (acquired by Sanofi). His expertise is expected to guide Upstream Bio in its mission to develop innovative therapies for patients with inflammatory diseases.
