BioAge Labs Targets Obesity with Upsized IPO, Expected to Raise $198M to Fund Clinical Trials

BioAge Labs (Richmond, CA), a clinical-stage biopharmaceutical company developing therapies for metabolic diseases such as obesity, has announced the pricing of its upsized initial public offering (IPO). The company expects to raise $198 million from the sale of 11 million shares at $18 per share. Shares are set to begin trading on the Nasdaq Global Select Market under the ticker symbol BIOA on September 26, 2024.

This comes on the heels of BioAge raising $170 million in February 2024, further boosting its financial base to advance clinical trials for its lead product candidate, azelaprag. The company, which also partners with Eli Lilly, aims to address obesity and metabolic aging through a combination of innovative therapeutic strategies.

IPO Details:

• 11 million shares priced at $18 per share, with gross proceeds expected to total $198 million.
• Underwriters include Goldman Sachs, Morgan Stanley, Jefferies, and Citigroup.
• The 30-day option to purchase additional shares could raise the total proceeds to $227.7 million.
• The IPO is expected to close on September 27, 2024, subject to standard closing conditions.

BioAge's IPO follows a recent $170 million fundraising round in February 2024 and positions the company to continue its clinical work in obesity treatments. The company is known for its lead candidate, azelaprag, an orally delivered apelin receptor agonist designed to enhance weight loss and preserve muscle mass in combination with GLP-1 receptor agonists, such as tirzepatide (Zepbound) and semaglutide (Wegovy). Azelaprag has shown promise in Phase 1 trials, where it was well tolerated and demonstrated potential benefits in muscle metabolism and body composition.

See also: A Booming Anti-Obesity Drug Discovery Landscape at a Glance (With Challenges)

Ongoing and Planned Clinical Trials

• STRIDES Trial: BioAge is conducting the STRIDES Phase 2 trial in collaboration with Eli Lilly to evaluate azelaprag in combination with tirzepatide for the treatment of obesity in adults aged 55 and older. The trial, which began dosing patients in July 2024, will measure weight loss at 24 weeks as the primary endpoint and assess body composition, glycemic control, and patient-reported outcomes. 220 patients are expected to be enrolled in this double-blind, placebo-controlled trial, with results anticipated by Q4 2025.
• Upcoming Trial with Semaglutide: BioAge is also preparing a second Phase 2 trial combining azelaprag with semaglutide (Wegovy), set to start in 2025. This trial aims to explore an all-oral regimen for obesity treatment, building on the company’s goal of developing therapies that can achieve comparable results to injectable drugs.

Azelaprag is an agonist of the apelin receptor (APJ), which is targeted to mimic the beneficial effects of exercise on metabolism. The drug is designed to work synergistically with GLP-1 receptor agonists, like tirzepatide, which reduce food intake. Preclinical studies have suggested that combining azelaprag with GLP-1 drugs can double the weight loss seen with incretin therapies alone, while also preserving healthy muscle mass and body composition.

In the SEC filing, Azelaprag is reported to be well tolerated across eight Phase 1 clinical trials involving 265 individuals, where it was shown to improve muscle metabolism, reduce muscle atrophy, and preserve energy expenditure and fitness in older adults.

Industry Context and IPO Significance

BioAge’s IPO arrives at a time of increased investment in obesity treatments, with the company joining other biotechs such as Bicara Therapeutics and Zenas BioPharma in going public. With rising global obesity rates and growing demand for innovative treatments, BioAge's IPO is seen as a potential indicator of market confidence in the metabolic disease space.

According to Kazi Helal, Ph.D., senior biotech analyst at PitchBook, “BioAge's IPO could serve as a bellwether for the sector, potentially catalyzing further investment and innovation.” Other emerging companies in the metabolic disease space include Metsera, Hercules CM NewCo, and SixPeaks Bio.

Topics: Startups & Deals