Phase 2 cancer clinical biotech CARGO Therapeutics (CRGX proposed) launched its $300 million IPO early today (Monday, Nov. 6, 2023) by disclosing terms: 18.75 million shares at $15.00 to $17.00. The IPO is expected to price Thursday night, Nov. 9, 2023, to trade Friday, Nov. 10, on the NASDAQ. If CARGO Therapeutics prices its IPO at the $16.00 mid-point, the company would have a valuation or a market cap of $618.77 million.
J.P. Morgan, Jefferies, Cowen and Truist Securities are the joint book-runners.
CARGO Therapeutics, based in San Mateo, California, is evaluating CRG-022, its lead CD22 CAR T-cell product candidate, in “a potentially pivotal Phase 2 clinical trial in patients with LBCL (large B-cell lymphoma) whose disease relapsed or was refractory to CD19 CAR T-cell therapy,” the prospectus says. Cargo Therapeutics licensed the underlying CAR (chimeric antigen receptor) exclusively from the National Cancer Institute. According to the prospectus: “A CAR is a protein that has been engineered to modify T cells so they can recognize and destroy cancer cells.” Cargo Therapeutics’ potential cell therapy uses a cancer patient’s own cells, the prospectus says.
Principal shareholders include Samsara BioCapital and Third Rock Ventures, according to Cargo Therapeutics’ S-1/A filing.
The SEC filing also shows that CARGO Therapeutics has no product revenues and a sizable net loss: $56.63 million for the 12 months that ended June 30, 2023. This financial profile – no product revenues and a substantial net loss – is typical for a biotech when it goes public.
CARGO Therapeutics’ IPO is the second biotech IPO to jump on the IPO Calendar with a Monday launch in the past two weeks.
Lexeo Therapeutics (LXEO), a clinical biotech developing cardiovascular and Alzheimer’s disease drugs, launched last Monday and priced its IPO last Thursday night, Nov. 2, at $11.00 – $2.00 below the bottom of its $13.00-to-$15.00 price range – on 9.09 million shares. Lexeo Therapeutics’ stock slid on Friday in its NASDAQ debut, closing at $10.05.
In contrast, other biotech IPOs priced earlier this year are doing well. RayzeBio, Inc. (RYZB), priced on Sept. 14, 2023, at $18.00, closed Friday, Nov. 3, 2023, at $22.35. Structure Therapeutics (GPCR), priced on Feb. 2, 2023, at $15.00, closed Friday, Nov. 3, 2023, at $69.88.
(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s website.)
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