BERKELEY - Carmot Therapeutics Inc., a clinical-stage biopharmaceutical company, has filed for an initial public offering (IPO) to raise $100 million, as revealed in a recent SEC S-1 form submission today. The Berkeley-based firm, led by President Heather Turner, who has held previous roles at Lyell Immunopharma and Sangamo Therapeutics, is focusing on developing treatments for metabolic diseases such as obesity and diabetes.
Carmot's lead drug, CT-388, has demonstrated statistically significant weight loss in Phase 1/2 trials. With a robust balance sheet featuring $126 million in cash as of September 30 and backing from investors like RA Capital, the company is preparing for its Nasdaq debut under the ticker CRMO. The treatment markets Carmot is targeting are expected to see substantial growth, with forecasts indicating an increase from $10.8 billion in revenue in 2022 to an estimated $51 billion by 2032, representing a compound annual growth rate of 16.8%.
The proceeds from the IPO are earmarked to advance clinical developments, including therapies for Prader-Willi syndrome, ongoing preclinical work, and potential business expansions. This move comes during a year that has seen few biotech IPOs, with Carmot looking to enter a competitive $200 billion obesity market where drugs like Wegovy and Zepbound are notable players.
In addition to CT-388, Carmot is also progressing with other drug candidates such as CT-996 and CT-868—the latter having recently started Phase II trials for obese type 1 diabetic patients. Earlier in November, the company had announced the commencement of these trials. Back in October 2023, during Obesity Week's annual event, Carmot had unveiled promising Phase II data for CT-868 for type 2 diabetic patients.
With J.P. Morgan serving as one of the underwriters, Carmot is advancing towards its market entry without any significant legal hurdles. However, details regarding the IPO's pricing have yet to be disclosed.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.