Gloomy clouds may still hang thick over the initial public offering (IPO) market, but some companies are still wading into the listing abyss. Investors seeking a new biopharma play have a new deal to size up.
On November 20, Carmot Therapeutics filed its paperwork with the Securities and Exchange Commission (SEC) for its debut in public markets.
The firm has not yet released price details for the deal; instead, it is citing the placeholder sum of $100 million in its submitted documentation. The company hopes to list its shares on Nasdaq “as soon as practicable after this registration” under the ticker “CRMO.”
Bookrunners for the deal include JP Morgan, Band of America Securities, Piper Sandler, and Guggenheim Securities.
The Berkeley-based firm develops treatments for metabolic diseases, including obesity and diabetes. It is headed by President Heather Turner, who held previous roles at Lyell Immunopharma and Sangamo Therapeutics.
Carmot’s two lead drug candidates, CT-388 and CT-868, are both in Phase 2 development.
Carm CT-388 has demonstrated statistically significant weight loss in Phase 1/2 trial, per its prospectus.
The firm is also developing CT-996, an oral small molecule, amid an ongoing Phase 1 first-in-human clinical trial.
The firm plans to use the funds from the launch to further its clinical developments, including therapies for Prader-Willi syndrome, ongoing preclinical work, as well as potential business expansions.
Plus-sized Market Opportunity
There is a huge demand for the type of product Carmot is developing. Obesity and diabetes are two of the most prevalent diseases in the world, together impacting over 750 million people globally. They cause severe health setbacks, including cardiovascular and chronic kidney disease, and increase the risk of death.
The problem is only getting worse as obesity rates continue to skyrocket. This year, the World Obesity Federation (WOF) released a report predicting that by 2035, over 4 billion people – more than half the world’s population – will be obese or overweight.
This signals a mega market opportunity for firms that can deliver effective solutions to this health epidemic.
Last year, the global market for obesity treatment was estimated to be worth almost $11 billion, but it is expected to swell to $32 billion by 2032, according to a 2023 market research report by Market Research Future.
However, Carmot will have its work cut out for it. Established major players in this space are already gaining ground fast. Novo Nordisk, for instance, the Danish maker of the Wegovy and Ozempic weight-loss drugs, has skyrocketed nearly 50 percent this year to become Europe’s most valuable company.
Few biotech companies have made it to market this year. Notable names who have braved the icy IPO waters include Cargo Therapeutics and Lexeo Therapeutics.
Investors will need to keep an eye out for updates on this unique biopharma deal as the year comes to a close.
This article was produced and syndicated by Wealth of Geeks.