Septerna Announces Closing of $331.2 Million Upsized Initial Public Offering

Rhea-AI Summary

Septerna (Nasdaq: SEPN) has successfully completed its upsized initial public offering, raising $331.2 million in gross proceeds. The clinical-stage biotechnology company, focused on GPCR oral small molecule drug discovery, sold 18,400,000 shares at $18.00 per share, including 2,400,000 additional shares from the full exercise of underwriters' option. Trading began on the Nasdaq Global Market on October 25, 2024, under ticker SEPN. J.P. Morgan, TD Cowen, Cantor, and Wells Fargo Securities served as joint bookrunners for the offering.

Positive

• Successful completion of upsized IPO raising $331.2 million in gross proceeds
• Full exercise of underwriters' option to purchase additional shares, indicating strong demand
• Listing on major exchange (Nasdaq Global Market)
• Support from prominent investment banks as joint bookrunners

Negative

• Significant potential dilution for future shareholders
• Substantial offering expenses and underwriting discounts to be deducted from gross proceeds

Insights

Financial Analyst

The successful completion of a $331.2 million IPO represents a significant milestone for Septerna, providing substantial capital for their GPCR drug development pipeline. The upsized offering and full exercise of the underwriters' option at $18.00 per share indicates strong institutional investor interest. With a market cap of $840.9 million, this biotech now has a considerable war chest to advance their clinical programs.

The involvement of major underwriters like J.P. Morgan and Wells Fargo adds credibility to the offering. The substantial capital raise positions Septerna competitively in the GPCR drug development space, typically providing 18-24 months of operational runway. However, investors should note that clinical-stage biotechs often require significant ongoing capital to fund R&D and clinical trials before reaching profitability.

Medical Research Analyst

Septerna's focus on GPCR-targeted oral small molecules represents a compelling therapeutic approach. GPCRs are involved in numerous biological processes and are targets for approximately 34% of all FDA-approved drugs. The substantial IPO funding will support their innovative platform technology in developing potentially more effective and convenient oral medications compared to existing injectable therapies.

The company's ability to attract this level of investment suggests confidence in their technological platform and drug development strategy. This capital injection enables acceleration of their clinical programs and expansion of their drug candidate pipeline, though success in clinical trials remains the critical factor for long-term value creation.

SOUTH SAN FRANCISCO, Calif., Oct. 30, 2024 (GLOBE NEWSWIRE) -- Septerna, Inc. (Nasdaq: SEPN), a clinical-stage biotechnology company pioneering a new era of G protein-coupled receptor (GPCR) oral small molecule drug discovery, today announced the closing of its upsized initial public offering (IPO) of 18,400,000 shares of its common stock at a public offering price of $18.00 per share, which includes an additional 2,400,000 shares issued upon the full exercise by the underwriters of their option to purchase additional shares. All of the shares were offered by Septerna.

The aggregate gross proceeds to Septerna from the IPO were $331.2 million, before deducting underwriting discounts and commissions and other offering expenses. The shares began trading on the Nasdaq Global Market on October 25, 2024, under the ticker symbol “SEPN.”

J.P. Morgan, TD Cowen, Cantor and Wells Fargo Securities acted as joint bookrunners for the offering.

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 October 24, 2024. The offering was made only by means of a prospectus. A copy of the final prospectus may be obtained from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.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; and Wells Fargo Securities, LLC, 90 South 7th Street, 5th Floor, Minneapolis, Minnesota 55402, by telephone at (800) 645-3751 (option #5) or by email at WFScustomerservice@wellsfargo.com.

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

About Septerna
Septerna, Inc. is a clinical-stage biotechnology company pioneering a new era of GPCR oral small molecule drug discovery powered by its proprietary Native Complex Platform™. Its industrial-scale platform aims to unlock the full potential of GPCR therapies and has led to the discovery and development of its deep pipeline of product candidates focused initially on treating patients in three therapeutic areas: endocrinology, immunology and inflammation, and metabolic diseases. Septerna was launched by preeminent drug discovery company builders and scientific leaders in the biochemistry, structural biology, and pharmacology of GPCRs.

Investor Contacts
Monique Allaire, THRUST
monique@thrustsc.com

Renee Leck, THRUST
renee@thrustsc.com

Media Contact
Carly Scaduto
carly@carlyscadutoconsulting.com 

FAQ

How much did Septerna (SEPN) raise in its IPO?

Septerna raised $331.2 million in gross proceeds through its initial public offering.

What was Septerna's (SEPN) IPO share price?

Septerna's IPO was priced at $18.00 per share.

How many shares did Septerna (SEPN) sell in its IPO?

Septerna sold 18,400,000 shares, including 2,400,000 additional shares from the underwriters' option exercise.

When did Septerna (SEPN) start trading on Nasdaq?

Septerna began trading on the Nasdaq Global Market on October 25, 2024.