Alto Neuroscience, Fractyl Health Join IPO Surge with Detailed Offering Plans

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Pictured: Nasdaq sign on building in New York City/iStock, hapabapa

Initial public offering activity continues to take off this month with California-based Alto Neuroscience and Massachusetts-based Fractyl Health the latest biotech companies filing their respective IPO plans with the SEC.

Fractyl detailed its plans on Monday to sell over 7.3 million shares of its common stock. In its SEC filing, the company said the IPO will be priced between $14 and $16 per share and listed on the Nasdaq with the ticker symbol GUTS. The document said that the net proceeds from the IPO are approximated at $99 million, with the price set at $15 per share.

If underwriters purchase more shares, Fractyl estimates it could see over $114 million raised from the IPO.

Fractyl intends to use $15 million from the IPO to complete its ongoing Revitalize-1 clinical study investigating lead drug Revita in treating type 2 diabetes. Another $23 million will go to its Remain-1 trial investigating an obesity treatment candidate.

In addition, $28 million will go toward funding Fractyl’s preclinical development of a gene therapy candidate Rejuva. Any cash left over will be used for the company’s working capital and other uses such as medical education and other “commercial readiness activities.” Ultimately, the IPO will provide the company with a cash runway through 2025.

Meanwhile, California-based Alto Neuroscience also provided its IPO details in an SEC document on Monday, with plans to offer up 6.7 million shares of its common stock priced between $14 and $16 per share with the New York Stock Exchange ticker symbol ANRO.

Alto NeuroScience is looking to net around $89 million to $103 million from the IPO, if the underwriters exercise their option, with the price set at $15 per share. The company will use the funds for the clinical development of several of its assets, with an estimated $30 million going toward ALTO-100 through Phase IIb.

Around $10 million will go to developing three other assets, according to the company. The remaining funds will be used for further development work and enhancements to the platform as well as chemistry, manufacturing, and controls (CMC). The IPO will potentially fund Alto for at least 24 months.

Alto and Fractyl’s plans for going public market come amid a string of IPOs last week. CG Oncology started trading on the Nasdaq on Thursday after announcing an upsized IPO of $380 million after putting 20 million shares up for sale at $19 per share. ArriVent Biopharma unveiled its IPO last week as it looks to net over $156 million potentially.

Tyler Patchen is a staff writer at BioSpace. You can reach him at tyler.patchen@biospace.com. Follow him on LinkedIn.

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