In 2024, six companies focused on immunology listed in the US.
According to BioPharma Dive data, it was the highest total outside of oncology since 2021 when only seven of 104 newly listed companies were focused on anti-inflammatory drugs.
Three years later, the tide seems to have turned.
In 2024, a majority of the 22 IPOs in the US, including eight of the 10 largest, have involved companies with drugs in Phase 2 trials or beyond.
The latest company with a drug in advanced clinical development to achieve IPO success, is Upstream.
Upstream’s lead candidate, verekitug, is designed to target thymic stromal lymphopoietin (TSLP), a protein linked to inflammation triggered by allergens.
The company expects to report Phase 2 results in chronic rhinosinusitis in late 2025, followed by a mid-stage asthma study in 2026.
Originally developed by Astellas Pharma, verekitug was acquired by Upstream in a 2021 auction, using proceeds from a $200 million Series A round.
TSLP gaining attention
Targeting TSLP has garnered increasing attention, with Amgen (NASDAQ:AMGN) and AstraZeneca’s Tezpire already approved for asthma.
Several startups, including Uniquity Bio, Aiolos Bio, and Proteologix, have advanced similar candidates, with Aiolos and Proteologix subsequently acquired by larger companies.
Upstream asserts that verekitug could offer advantages over Tezpire, including potentially greater potency and longer dosing intervals. The company is testing intervals of 12 and 24 weeks in its ongoing Phase 2 trials.
Upstream raised about $400 million in private funding prior to its IPO, with OrbiMed holding a 13% stake, according to the company’s IPO filing.
Research firm Renaissance Capital reported that ten companies were anticipated to price their IPOs by today. To date, the US has seen 111 IPOs in 2024, marking a 34% increase compared to the previous year, according to the firm.