Even with Eli Lilly's endorsement, TRex Bio (TRXB.US) struggles to enjoy a premium, as the issue price drops to the lower limit of $14.
Early-stage biotechnology company TRex Bio has priced its IPO at the lower end of the range at $14 per share, raising $116.7 million and achieving a market capitalization of $384 million. The company will be listed on Nasdaq on Friday, with Eli Lilly expressing interest in increasing its stake.
According to Zhihu Finance APP, early-stage biotechnology company TRex Bio Inc., which focuses on autoimmune and inflammatory diseases, has raised $116.7 million through an IPO, with the offering price set at the lower end of its proposed range.
According to a statement released Thursday, the company sold approximately 8.3 million shares at a price of $14 per share. Previously filed documents indicated that the biotech company had set an offering range of $14 to $16 per share.
Based on the IPO offering price, San Francisco-based TRex has a market value of $384 million, calculated according to the number of outstanding shares listed in the documents.
The company's investors include Eli Lilly, SV Health Investors, Pfizer Ventures, Johnson & Johnson Innovation, Janus Henderson Investors, Alexandria Venture Investments, Delos Capital, and Polaris Partners. Prior filings indicated that Eli Lilly expressed interest in subscribing for shares in this IPO but does not intend to increase its stake to more than 19.9%.
Strong overall volume, diverging returns
TRex is expected to continue the strong momentum for U.S. healthcare IPOs this year. Compiled data shows that biotech and pharmaceutical IPOs have raised nearly $800 million so far this year, almost six times the amount raised during the same period last year.
However, its pricing reflects the direct manifestation of the "overall boom, internal divergence" pattern seen in biopharma IPOs in 2026: the sector's weighted average return this year is about +55%, but almost all the gains come from "platform-based, multi-pipeline, catalyst-nearing" companies.
Looking at subsequent performance, platform-based, multi-pipeline companies (Parabilis, BillionToOne) rose 66% on their debut; single-asset, single-indication companies (Electra) broke issue price on their first day. Investors now price according to "the specific risks of the story" instead of giving a unified premium to the entire sector.
Furthermore, companies that are closer to binary readouts (about to enter Phase 3, or having already filed for listing) are more sought after; companies whose key data won't be available for more than 18 months typically go without a premium or even break below issue price. Companies like TRex Bio, which are "single-asset, Phase 1, with key data expected only by mid-2027," are a segment that the market has started to specifically price down in the second half of the year. Demand for such offerings is real but relatively shallow, and Eli Lilly's strategic endorsement is only enough to bring the deal to market, not to support a price premium within the proposed range.
The company plans to use the funds raised this time to advance its core candidate drug TRB-061, which is currently in early clinical trials for patients with moderate-to-severe atopic dermatitis. Documents show the company expects to release topline data for this investigational therapy by mid-next year. In addition, the company also plans to launch a Phase 1 clinical trial for TRB-071 in the first half of 2027, targeting inflammatory bowel disease.
In January of this year, TRex raised $50 million through a follow-on tranche of Series B preferred shares, with new investors including Janus Henderson and Balyasny Asset Management.
TRex CEO Johnston Erwin worked at Eli Lilly for 36 years before joining the company and previously led Lilly's internal venture arm, Lilly New Ventures.
Previously filed documents show the company had a net loss of $34.8 million in 2025, compared to a net loss of $3.1 million the previous year.
The offering is being led by JPMorgan, Evercore, Cantor Fitzgerald, Stifel Financial, and Wedbush PacGrow. Shares are expected to begin trading Friday on the Nasdaq Global Select Market under the ticker (TRXB.US).
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
BUZZ - Brokerage opinion: Pepsi's growth strategy in the US still needs adjustment
October 9 - Snack and soft drink giant PepsiCo (PEP.O) warned on Thursday that the recovery of growth and profit margins in its key North American market will take longer than planned, and stated it will implement further cost-cutting measures to offset weak demand for its snacks and beverages. Twenty-five analysts have given the stock an average rating of "Hold," with a median target price of $145, according to data compiled by LSEG. JPMorgan (rating: "Neutral," target price: $137) pointed out that the company remains strong in international markets, but demand for snacks and beverages in North America remains weak, with limited signs of near-term improvement. Deutsche Bank (rating: "Hold," target price: $132) noted that PepsiCo's North American Beverages (PBNA) segment continues to lag the competition, with weak profit margins. Although the company plans to strengthen brand investment and execution, the path to sustained improvement remains unclear. Piper Sandler ("Overweight," target price: $140) indicated that the company faces weak U.S. demand and cost pressures. While new protein and hydration products may support growth, such prospects have yet to be validated. RBC Capital Markets ("Sector Perform," target price: $150) highlighted that North American beverages remain the main drag, while franchise re-authorization could support longer-term growth.
Rothschild & Co Redburn Adjusts Price Target on Kimberly-Clark to $129 From $138
05:41 AM EDT, 10/09/2026 (MT Newswires) -- Kimberly-Clark (KMB) has an average rating of overweight and mean price target of $114.14, according to analysts polled by FactSet. (MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
KWAP raises Inari stake to 385,836,100 shares (9.982%) after open-market purchase
KWAP raised its stake in Inari Amertron via an open-market purchase of 2,279,500 shares on Oct. 8. Total holdings increased to 385,836,100 shares, comprising 310,316,100 direct shares (8.03%) and 75,520,000 indirect shares (1.95%). The disclosure notice was dated Oct. 9. Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Inari Amertron Bhd published the original content used to generate this news brief via Bursa Malaysia (KLSE) (Ref. ID: 3713681) on October 09, 2026, and is solely responsible for the information contained therein.
BUZZ - "Broker Views": Analysts skeptical about reports of Starbucks acquiring Chipotle
On October 9, the Financial Times reported Thursday that Starbucks SBUX.O had explored the potential acquisition of Chipotle CMG.N, a move that would see CEO Brian Niccol return to the Mexican burrito chain he once led. Starbucks declined to comment, stating the company would remain “fully focused” on its own business turnaround. **Limited Strategic Rationale** BTIG expressed “high skepticism,” noting that from a supply chain and operational perspective, the deal “does not make sense” and would cause significant dilution for Starbucks shareholders while disrupting management at both brands. BTIG analyst Peter Saleh stated: “Over the years, we've heard many stories about multi-brand acquisitions... but few actually happen, and even fewer succeed.” William Blair analyst Sharon Zackfia pointed out that, given the differences in supply chains, the deal offers “no clear revenue synergies and very limited benefits in procurement.” She also noted that as of June, Starbucks’ $9.4 billion net debt would make financing an acquisition “difficult to justify” and could raise the combined company's leverage ratio to about 6x, which is high in the publicly listed restaurant sector. D.A. Davidson indicated that given the distinct differences between the brands and limited apparent synergies, the likelihood of the deal succeeding is 20% or less. EMarketer analyst Suzy Davidkhanian commented that Niccol's familiarity with Chipotle could reduce execution risks, but Starbucks investors might view this transaction as a “costly distraction” hindering the company’s turnaround. (Note: For non-English speakers, Reuters provides automated translation of reports into several other languages for convenience. Due to potential errors and lack of required context, Reuters does not guarantee the accuracy of automated translations and assumes no liability for any damages or losses arising from their use.)
Crypto prices
More
