Drug developer Generate Biomedicines raises $400 million in US IPO

Feb 26 (Reuters) - Generate Biomedicines said on Thursday that it raised $400 million in its U.S. initial public offering, pricing shares of the U.S.-based drug developer at $16 each.

The offering comes as the IPO market remains volatile, with swings in high-growth technology stocks driven by concerns that artificial intelligence could disrupt established businesses and industries.

Recent sell-offs have delayed IPO plans of several firms, with analysts noting that successful listings generally depend on strong investor sentiment.

Backed by venture firm Flagship Pioneering, Generate Biomedicines sold 25 million shares in the offering, within its target range of $15 to $17, with all shares offered by the company itself.

Founded by Flagship in 2018, Generate Biomedicines uses AI-driven technology to move beyond traditional trial-and-error drug discovery and develop new protein-based therapies, with its pipeline centered on immunology and oncology.

Generate's lead drug candidate for severe asthma, GB-0895, is currently in a late-stage trial, with full enrollment in the study expected by the first half of 2028.

The company will start trading on the Nasdaq under the ticker symbol "GENB" on Friday.

Goldman Sachs, Morgan Stanley, Piper Sandler, Guggenheim Securities and Cantor are the underwriters for the offering.