(Reuters) – Shares of weight-loss drug developer Metsera surged nearly 42% in a strong Nasdaq debut on Friday, valuing the ARCH Venture Partners-backed biotech firm at $2.68 billion.
Shares of the company opened at $25.5 apiece, compared with the initial public offering price of $18.
The strong market debut of the New York City-based biotech company highlights the growing investor interest in companies developing innovative weight-loss treatments.
Last year, biotech firms such as BioAge Labs and MBX Biosciences were well received on their debuts.
Some experts expect that the global weight-loss drug market could be valued at $150 billion by the early 2030s.
Metsera sold 15.28 million shares at $18 apiece after downsizing its IPO. The company had initially marketed 17.19 million shares at a range of $15 to $17 per share.
The expectations of lower corporate taxes and a more business-friendly regulatory environment under the Donald Trump administration improved investors’ sentiment and their appetite for U.S. IPOs.
However, analyst do not expects a dramatic rise in IPO proceeds for 2025 due to high interest rates.
Metsera was listed alongside biotech firm Maze Therapeutics and Infinity Natural Resources. Last week, LNG exporter Venture Global’s, the year’s biggest U.S. IPO, listing fell short of high expectations.
Founded in 2022 by venture capital firm ARCH Venture and investment company Population Health Partners, Metsera is developing injectable and oral drugs to treat obesity, based on the GLP-1 mechanism and other biological targets.
Metsera’s most advanced product candidate, MET-097i, an injectable, showed an average weight loss of 11.3% in patients during a mid-stage trial, the company said earlier this month.
BofA Securities, Goldman Sachs, Evercore ISI, Guggenheim Securities and Cantor were the underwriters for the offering.
(Reporting by Prakhar Srivastava and Christy Santhosh in Bengaluru ; Editing by Tasim Zahid and Maju Samuel)
