Three healthcare startups looking to raise up to $400mln

September was the busiest month for healthcare IPOs this year, according to Dealogic data

Three healthcare startups are looking to raise up to $400 million in their U.S. IPOs, underscoring the sector’s strong rebound in 2024 after a two-year slump.

September was the busiest month for healthcare IPOs this year, according to Dealogic data. Strong debuts by firms such as BioAge Labs and Bicara Therapeutics have also encouraged listings among other IPO candidates.

Meanwhile, startups are looking to take advantage of the early stages of a potential interest rate-cutting cycle by the U.S. Fed, even though the uncertainty around the country’s presidential election next month is likely to keep a lid on funding activity toward the end of the year.

Biotechs may want to capture the current market momentum rather than waiting for elections or economic indicators, according to Zara Muradali, national managing principal of Grant Thornton’s life sciences industry practice.

As private equity and VC firms seek exits for their investments, there may be pressure on biotech companies to list sooner rather than later, Muradali said.

Upstream Bio, developing treatments for some respiratory disorders, is aiming for up to $212.5 million. Kaiser Permanente-backed CAMP4 Therapeutics, working on therapies for a range of genetic diseases, is seeking $80 million.

CeriBell is targeting up to $107.2 million. The firm makes monitors to detect neurological conditions and is backed by TPG’s The Rise Fund.

A firm with a product that’s in a clinical trial is mature and it likely took a significant round of private capital in order to get there. Those will try to tap the market, according to Ross Carmel, partner at securities law firm Sichenzia Ross Ference Carmel.

Upstream is evaluating its chief product in a mid-stage trial, while CAMP4’s therapy is being assessed in an early-stage trial. Both have not generated any revenue from sales. CeriBell already fetches revenue.