Bicara Therapeutics Announces Closing of $362 Million Initial Public Offering, Including Full Exercise of Underwriters’ Option to Purchase Additional Shares

Rhea-AI Summary

Bicara Therapeutics (Nasdaq: BCAX) has successfully closed its initial public offering (IPO) of 20,125,000 shares of common stock at $18.00 per share, raising gross proceeds of approximately $362 million. The offering included the full exercise of the underwriters' option to purchase an additional 2,625,000 shares. Trading of Bicara's shares on the Nasdaq Global Market began on September 13, 2024, under the ticker symbol 'BCAX'.

The IPO was jointly managed by Morgan Stanley, TD Cowen, Cantor, and Stifel as bookrunners. Bicara Therapeutics, a clinical-stage biopharmaceutical company focused on developing bifunctional therapies for solid tumors, will use the proceeds to advance its research and development efforts.

Positive

• Successful IPO raising $362 million in gross proceeds
• Full exercise of underwriters' option to purchase additional shares, indicating strong demand
• Listing on Nasdaq Global Market, potentially increasing visibility and liquidity
• Significant capital infusion to support research and development of bifunctional therapies for solid tumors

Negative

• Potential dilution of existing shareholders' ownership due to the large number of new shares issued
• Increased public scrutiny and reporting requirements as a newly public company
• Market volatility risks associated with newly listed biotech stocks

Insights

Financial Analyst

Bicara Therapeutics' successful IPO, raising $362 million, is a significant milestone for the company. The full exercise of the underwriters' option indicates strong investor demand. With a share price of $18.00, the market values Bicara at approximately $362 million post-IPO. This substantial capital injection positions Bicara favorably to advance its pipeline of bifunctional therapies for solid tumors. However, investors should note that as a clinical-stage company, Bicara likely has no immediate revenue streams. The funds will be important for R&D, clinical trials and potential commercialization efforts. While the IPO success is promising, the company's long-term value will depend on the clinical outcomes of its therapies and ability to navigate the competitive oncology market.

Oncology Expert

Bicara Therapeutics' focus on bifunctional therapies for solid tumors is noteworthy in the evolving landscape of cancer treatment. These therapies aim to engage two targets simultaneously, potentially enhancing efficacy and overcoming resistance mechanisms. The substantial $362 million raised provides Bicara with a robust financial runway to advance its pipeline. This is important in the capital-intensive field of oncology drug development, where clinical trials are lengthy and costly. The market's strong response to the IPO suggests confidence in Bicara's approach. However, it's important to remember that success in preclinical or early clinical stages doesn't guarantee FDA approval. Investors should closely monitor upcoming clinical trial results to gauge the potential of Bicara's therapies in addressing unmet needs in solid tumor treatment.

Market Research Analyst

Bicara Therapeutics' successful IPO, raising $362 million, reflects the current investor appetite for innovative biotech companies, particularly those focusing on oncology. The full exercise of the underwriters' option to purchase additional shares at $18.00 each indicates strong market demand. This IPO stands out in a challenging market environment, where many companies have postponed or canceled their public offerings. The involvement of major underwriters like Morgan Stanley and TD Cowen adds credibility to the offering. However, investors should be cautious. The biotech sector is known for its high risk-reward profile and Bicara, as a clinical-stage company, faces significant challenges ahead. The company's performance will likely be highly dependent on clinical trial outcomes, regulatory decisions and its ability to eventually commercialize its therapies in a competitive oncology market.

BOSTON, Sept. 16, 2024 (GLOBE NEWSWIRE) -- Bicara Therapeutics Inc. (Nasdaq: BCAX), a clinical-stage biopharmaceutical company committed to bringing transformative bifunctional therapies for patients with solid tumors, today announced the closing of its initial public offering of 20,125,000 shares of its common stock at a public offering price of $18.00 per share, which includes 2,625,000 shares issued upon the exercise in full by the underwriters of their option to purchase additional shares of common stock in the offering. Bicara Therapeutics’ shares began trading on the Nasdaq Global Market on September 13, 2024 under the ticker symbol “BCAX.” All of the shares of common stock were sold by Bicara Therapeutics.

Morgan Stanley, TD Cowen, Cantor and Stifel acted as joint bookrunners for the offering.

The gross proceeds to Bicara Therapeutics from the initial public offering, including full exercise of the underwriters’ option to purchase additional shares, before deducting underwriting discounts and commissions and offering expenses payable by Bicara Therapeutics, were approximately $362 million.

A registration statement relating to the shares sold in the initial public offering has been filed with the Securities and Exchange Commission and was declared effective on September 12, 2024. The offering was made only by means of a prospectus. A copy of the final prospectus, may be obtained from: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, by telephone at (866) 718-1649, or by email at prospectus@morganstanley.com; TD Securities (USA) LLC, 1 Vanderbilt Avenue, New York, New York 10017, by telephone at (855) 495-9846, or by email at TD.ECM_Prospectus@tdsecurities.com; Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, New York, New York 10022 or by email at prospectus@cantor.com; or Stifel, Nicolaus & Company, Incorporated, Attention: Prospectus Department, One Montgomery Street, Suite 3700, San Francisco, CA 94104 by telephone at (415) 364-2720 or by email at syndprospectus@stifel.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Bicara Therapeutics

Bicara Therapeutics is a clinical-stage biopharmaceutical company committed to bringing transformative bifunctional therapies to patients with solid tumors. Bicara’s lead asset, ficerafusp alfa, is a bifunctional antibody that combines two clinically validated targets, an epidermal growth factor receptor (EGFR) directed monoclonal antibody with a domain that binds to human transforming growth factor beta (TGF-β). Through this dual-targeting mechanism, ficerafusp alfa has the potential to exert potent anti-tumor activity by simultaneously blocking both cancer cell-intrinsic EGFR survival and proliferation, as well as the immunosuppressive TGF-β signaling within the tumor microenvironment. Ficerafusp alfa is initially being developed in head and neck squamous cell carcinoma, where there remains a significant unmet need.

Contacts

Investors
Rachel Frank
IR@bicara.com

Media
Dan Budwick
1AB
dan@1abmedia.com

FAQ

How much did Bicara Therapeutics (BCAX) raise in its IPO?

Bicara Therapeutics raised approximately $362 million in gross proceeds from its initial public offering.

What was the IPO price for Bicara Therapeutics (BCAX) shares?

The public offering price for Bicara Therapeutics shares was $18.00 per share.

When did Bicara Therapeutics (BCAX) begin trading on the Nasdaq?

Bicara Therapeutics began trading on the Nasdaq Global Market on September 13, 2024.

How many shares did Bicara Therapeutics (BCAX) offer in its IPO?

Bicara Therapeutics offered a total of 20,125,000 shares in its IPO, including the full exercise of the underwriters' option.