BioAge Labs IPO: More Capital for Obesity Treatments

On Thursday of last week, BioAge Labs raised almost $200MM from their IPO. The company, with one therapeutic in a Phase 2 clinical trial for weight loss, focuses on discovery and treatment of metabolic diseases such as obesity. 

• A metabolic disease is a disorder that disrupts normal metabolism—the process your body uses to convert food and other substances into energy and other essential elements for cellular function. These diseases can be caused by genetic factors, enzyme deficiencies, or problems in hormone production and regulation. They often lead to the accumulation or deficiency of specific substances, causing various symptoms and health issues. Common examples include diabetes, phenylketonuria, and lipid storage diseases. Metabolic diseases can affect multiple organ systems and may require lifelong management.

The IPO comes after a series of three biotech IPOs raised almost $700MM in one day. While the company's therapeutics are still in clinical trials, strong leadership is a contributing factor in the successful capital raise. Former GSK CEO Jean-Pierre Garnier was appointed as the Chair of the company’s Board of Directors. Known primarily as J.P., Garnier saw the merging of SmithKline Beecham PLC and Glaxo Wellcome PLC to form GlaxoSmithKline (GSK). While serving as CEO of GSK, Garnier improved the company’s pipeline and oversaw more than 30 new therapeutic products move into late stage clinical trials. With even more experience serving as CEO at Pierre Fabre, a large French pharmaceutical company, and other high ranking business positions at a variety of biotech companies likely have investors excited for developments coming out of BioAge.

BioAge’s lead compound, Azelaprag, is in a Phase 2 clinical trial being evaluated in combination with Eli Lilly’s Zepbound. Azelaprag mimics the peptide apelin which is normally released during exercise. The therapeutic is also targeted towards insulin sensitivity, making it effective for individuals with Type 2 Diabetes. While primarily aimed at weight loss, in a clinical trial, Azelaprag prevented muscular atrophy where a placebo failed to.

With an estimated 988 million individuals worldwide living with obesity and 2 billion with a cardiometabolic disease, there is a large market for BioAge to tap. Already targeted by pharmaceutical giants like Novo Nordisk and Eli Lilly and set to grow at a 10% CAGR, the obesity treatment market is expected to reach $38 billion by 2032. With high profits to be made, it is no wonder why so many companies, small and large alike, are trying to capitalize their market share early on.

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