BioAge Labs Announces Closing of Initial Public Offering, Full Exercise of Underwriters’ Option to Purchase Additional Shares and Closing of the Concurrent Private Placement

Rhea-AI Summary

BioAge Labs (Nasdaq: BIOA) has successfully closed its upsized initial public offering (IPO) of 12,650,000 common stock shares at $18.00 per share, including the full exercise of the underwriters' option for 1,650,000 additional shares. The company also completed a concurrent private placement of 588,888 shares at the IPO price to an existing stockholder. The combined gross proceeds from the IPO and private placement totaled approximately $238.3 million, before deducting underwriting discounts, commissions, and expenses.

Goldman Sachs & Co. , Morgan Stanley, Jefferies, and Citigroup served as joint book-running managers for the offering and placement agents for the private placement. The IPO shares were offered under registration statements filed with the SEC, which became effective on September 25, 2024.

Positive

• Successful completion of upsized IPO with full exercise of underwriters' option
• Additional funds raised through concurrent private placement
• Substantial gross proceeds of approximately $238.3 million
• Strong support from underwriters and existing stockholder

Negative

• Potential dilution of existing shareholders due to new share issuance
• Increased pressure to deliver results with newly raised capital

Insights

Financial Analyst

BioAge Labs' successful IPO and concurrent private placement mark a significant milestone for the company, raising approximately $238.3 million in gross proceeds. The upsized offering of 12,650,000 shares at $18.00 per share, along with the full exercise of the underwriters' option and the private placement, demonstrates strong investor interest in BioAge's potential in the metabolic disease and anti-aging space.

The substantial capital raised provides BioAge with a robust financial foundation to advance its clinical-stage pipeline targeting obesity and other age-related metabolic disorders. This influx of funds should significantly extend the company's runway, enabling it to progress multiple candidates through clinical trials and potentially bring innovative therapies to market.

The involvement of major underwriters like Goldman Sachs, Morgan Stanley, Jefferies and Citigroup lends credibility to the offering and may attract further institutional investor interest. However, investors should note that as a newly public company, BioAge may face increased scrutiny and volatility as it transitions to meeting public market expectations and reporting requirements.

Biotech Industry Expert

BioAge Labs' successful IPO highlights the growing investor interest in companies targeting the biology of aging, particularly those focused on metabolic diseases like obesity. This field represents a significant market opportunity, given the global prevalence of obesity and related disorders.

The company's approach of developing therapeutics that target aging-related pathways to address metabolic diseases is innovative and aligns with the emerging understanding of aging as a modifiable risk factor for various health conditions. If successful, BioAge's products could potentially address multiple age-related disorders beyond obesity, expanding its market potential.

However, investors should be aware that the clinical-stage nature of BioAge's pipeline means there are still significant risks and uncertainties ahead. The path to regulatory approval for novel anti-aging therapies can be complex and success is not guaranteed. The substantial funding raised will be important for navigating the costly and time-consuming clinical trial process, but careful management of resources and strategic development decisions will be essential for long-term success in this competitive and evolving field.

RICHMOND, Calif., Oct. 01, 2024 (GLOBE NEWSWIRE) -- BioAge Labs, Inc. (“BioAge”) (Nasdaq: BIOA), a clinical-stage biopharmaceutical company developing therapeutic product candidates for metabolic diseases, such as obesity, by targeting the biology of aging, today announced the closing of its upsized initial public offering of 12,650,000 shares of its common stock, which includes the exercise in full by the underwriters of their option to purchase 1,650,000 additional shares, at the initial public offering price of $18.00 per share. All of the shares were offered by BioAge.

In addition to the shares sold in the initial public offering, BioAge today announced the closing on September 27, 2024 of its sale of 588,888 shares of its common stock at the initial public offering price per share in a concurrent private placement to an existing stockholder. The sale of the shares of common stock in the concurrent private placement was not registered under the Securities Act of 1933, as amended.

Goldman Sachs & Co. LLC, Morgan Stanley, Jefferies, and Citigroup acted as joint book-running managers for the offering and as placement agents for the concurrent private placement.

The gross proceeds to BioAge from the initial public offering, including full exercise of the underwriters’ option to purchase additional shares, and the concurrent private placement, before deducting underwriting discounts and commissions, placement agent fees and offering and private placement expenses, were approximately $238.3 million.

Registration statements relating to the securities issued and sold in the initial public offering have been filed with the U.S. Securities and Exchange Commission (SEC) and became effective on September 25, 2024. A prospectus relating to and describing the terms of the initial public offering has been filed with the SEC and is available on the SEC's website at www.sec.gov. The initial public offering was made only by means of a prospectus. Copies of the final prospectus may be obtained from Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at (866) 471-2526, or by email at Prospectus-ny@ny.email.gs.com; Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, or by email at prospectus@morganstanley.com; Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by telephone at (877) 821-7388, or by email at Prospectus_Department@Jefferies.com; Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at 800-831-9146.

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 BioAge Labs

BioAge is a clinical-stage biopharmaceutical company developing therapeutic product candidates for metabolic diseases, such as obesity, by targeting the biology of human aging. BioAge’s lead product candidate, azelaprag, is an orally available small molecule agonist of APJ that has been well-tolerated in 265 individuals across eight Phase 1 clinical trials, including a Phase 1b clinical trial where decreased muscle atrophy, preservation of muscle quality and improved metabolism were observed in subjects treated with azelaprag over a 10-day period. In mid-2024, BioAge initiated a Phase 2 trial of azelaprag in combination with tirzepatide for the treatment of obesity in older adults. Azelaprag has potential as an oral regimen to improve weight loss and restore both body composition and muscle function in patients on obesity therapy with incretin drugs. BioAge is also developing orally available small molecule brain penetrant NLRP3 inhibitors for the treatment of diseases driven by neuroinflammation. BioAge’s preclinical programs, based on novel insights from the BioAge’s discovery platform built on human longevity data, also have the potential to address key pathways in metabolic aging.

Contacts
PR: Chris Patil, media@bioagelabs.com
IR: Elena Liapounova, ir@bioagelabs.com
Partnering: partnering@bioagelabs.com

FAQ

How many shares did BioAge Labs (BIOA) sell in its IPO?

BioAge Labs sold 12,650,000 shares of common stock in its IPO, including 1,650,000 additional shares from the full exercise of the underwriters' option.

What was the price per share for BioAge Labs' (BIOA) IPO?

The initial public offering price for BioAge Labs' shares was $18.00 per share.

How much did BioAge Labs (BIOA) raise in total from its IPO and private placement?

BioAge Labs raised approximately $238.3 million in gross proceeds from the combined IPO and concurrent private placement.

When did BioAge Labs' (BIOA) IPO registration statements become effective?

The registration statements for BioAge Labs' IPO became effective on September 25, 2024.

Who were the underwriters for BioAge Labs' (BIOA) IPO?

Goldman Sachs & Co. , Morgan Stanley, Jefferies, and Citigroup acted as joint book-running managers for the offering.