Cell therapy biotech Artiva Biotherapeutics plans to use the funds raised to support the development of its AlloNK therapy for systemic lupus erythematosus.
Artiva Biotherapeutics announced Thursday that it is upsizing its initial public offering, placing 13.9 million shares on the market at $12 per share. This offering will bring an estimated $167 million to the San Diego–based biotech. Artiva’s underwriters have a 30-day option to purchase an additional 2 million shares of stock. The company began trading on the Nasdaq Friday and was set on selling over 8.7 million shares, from which it expected around $116 million.
Original story published July 15:
Artiva Targets $116M in Latest IPO Push
San Diego–based Artiva Biotherapeutics provided more details on its IPO push Monday, outlining plans to offer 8.7 million shares and raise approximately $116 million to advance its early-stage cell therapy candidates.
According to the SEC document, Artiva plans to price its shares between $14 and $16 on the Nasdaq and trade under the name “ARTV.” If priced at $15 per share, the company expects to net a maximum of $135 million if the underwriters exercise their options to purchase an extra 1.3 million shares.
Artiva noted that $55 million from the IPO would support the development of its NK cell therapy, AlloNK. The funds would lead the candidate through initial clinical data from its Phase I/Ib trial in patients with systemic lupus erythematosus (SLE). SLE is an autoimmune disease characterized by abnormal B-cell function that can cause organ damage and increase the risk of death. Phase I studies for the therapy in SLE began in April.
The AlloNK therapy is also being investigated as a treatment for other autoimmune diseases, including rheumatoid arthritis and pemphigus vulgaris, a rare disease that causes blisters on the skin.
Any remaining funds will be used to support other programs in Artiva’s pipeline and for other general purposes, according to the SEC document. The IPO and its existing cash is expected to fund the company through 2026.
Artiva previously attempted to launch an IPO in 2021, but halted its plans to instead focus on a manufacturing and commercialization pact with Affimed, according to Endpoints News.
The IPO filing could help to compensate for the loss of a partnership with Merck. Artiva had previously entered into a license and research collaboration agreement with the pharma in 2021, with Merck paying $30 million upfront. Artiva was also eligible to receive milestones and royalties for two target programs. However, according to the SEC document, Merck terminated the agreement in October 2023.
Artiva’s leap onto the exchange comes during a significant uptick in the biotech IPO market. In the first half of the year, 11 biotechs announced their intentions to launch a public offering, with some of the more significant valuations coming from CG Oncology, valued at $380 million, and Kyverna Therapeutics, at $366.9 million.
Biotechs are still turning to the IPO market, with Alumis annoucning in late June that it was pushing through with its offering but with a smaller raise of $250 million instead of the initially sought $274 million. However, Telix Pharmaceuticals announced in June that it would halt its IPO plans due to “market conditions.”
