ADARx jumps in Nasdaq debut after upsized IPO

Shares in ADARx Pharmaceuticals (ADRX) rose 30 per cent above their offer price in Nasdaq debut trading after the late-stage gene therapy developer raised $446.3mn in an upsized US initial public offering.

The stock opened at $22.10, against an IPO price of $17. The San Diego-based group sold 26.3mn shares at the top of its marketed range, up from an earlier plan to offer 21.9mn.

AbbVie (ABBV) has agreed to invest up to $100mn in a concurrent private placement, which would give the drugmaker a stake of roughly 4.9 per cent after the listing, ADARx said. Founded in 2019, ADARx is developing experimental drugs aimed at diseases of the immune, kidney, cardiovascular and neurological systems.

Lukas Muehlbauer, research associate at IPOX Research, said AbbVie's backing set the company apart. "Having AbbVie as a prominent backer made the company stand out, with the external validation adding to the appeal alongside its Phase 3 lead drug, with top-line trial data expected by the end of 2027," he said. He added that ADARx also benefited from a broader platform that could support multiple programs, rather than relying on the success of one or two assets.

Biotech has been a bright spot in this year's IPO market, with listings continuing into the fall as investors favor a sector seen as relatively insulated from the Iran war and AI-driven disruption. City Therapeutics and Iambic Therapeutics filed for US IPOs this week, following filings last week from Retension Pharmaceuticals and TRex Bio.

Not every debut has held up. Electra Therapeutics (ETRA), which raised $350mn in an upsized IPO before listing last Friday, has fallen about 21 per cent since. Muehlbauer said investors remained selective, favoring companies with more mature clinical assets and enough cash to reach key catalysts.