California-based biotechnology company Septerna has successfully completed its initial public offering (IPO), raising $288 million by selling 16 million shares at $18 per share, exceeding its initial target range of $15-17. The company will trade on the Nasdaq under the ticker symbol "SEPN."
The substantial raise builds upon more than $200 million in previous private funding from prominent investors including Third Rock Ventures, Samsara BioCapital, and RA Capital Management, highlighting continued investor confidence in companies developing novel therapeutics targeting G protein-coupled receptors (GPCRs).
Novel Approach to GPCR Drug Development
GPCRs represent a crucial family of cellular proteins involved in various biological functions, including energy metabolism and immune regulation. While GPCRs are targeted by approximately one-third of all approved medicines, research progress had stalled before Septerna's emergence in 2021.
"Most of the success has been around a relatively small number of these GPCRs," explained Jeff Finer, Septerna's CEO. "There's hundreds more that could be potential therapeutic opportunities."
Clinical Pipeline and Development Plans
The company's lead candidate, SEP-786, recently initiated Phase 1 clinical trials for hypoparathyroidism, a condition currently managed through daily injections and high-dose calcium supplements. The small molecule drug aims to help patients normalize calcium and phosphate levels, potentially preventing serious complications like seizures and renal failure. Initial clinical data is expected in mid-2025.
Septerna plans to strategically deploy the IPO proceeds, allocating approximately $117 million to advance SEP-786 and $37 million toward developing SEP-631, their second program targeting chronic spontaneous urticaria and other mast cell conditions.
Broader Industry Context
The successful IPO marks the 23rd biotech public offering of 2024, with September and October proving particularly active for the sector. Septerna joins other GPCR-focused companies like Structure Therapeutics in successfully accessing public markets, while peers such as Escient Pharmaceuticals and Tectonic Therapeutic have pursued alternative paths through acquisition and reverse merger, respectively.
Jordan Saxe, senior managing director of listing services at Nasdaq, noted that while IPO opportunities have decreased compared to 2020-2021, substantial investor capital remains available. "Every IPO is certainly dual tracked in this environment, so they're looking at not only the clinical outcome of commercial opportunity but also the M&A opportunity," Saxe commented.
