Kailera Therapeutics is advancing a pipeline of obesity drugs, led by the GLP-1/GIP dual agonist ribupatide, which the biotech is developing both as an injectable and as a pill.
After declaring its intent to go public last month, Kailera Therapeutics has now revealed an initial public offering amount that could be the highest the industry has seen in years.
Kailera will put 33 million shares of common stock up for sale for $14 to $16 apiece, according to its updated prospectus, resulting in a raise that could reach as high as $533 million. The biotech has also opened a 30-day option for underwriters to purchase up to 5 million additional shares of common stock at the initial public offering (IPO) price.
If underwriters completely take Kailera up on this offer, the biotech could see an $80 million bump to the IPO raise, bringing the total haul over $610 million. If fully realized, this would be the biggest public market debut in years and put Kailera firmly at the head of this year’s IPO class.
In February, AI-forward Generate:Biomedicines brought in $400 million in an IPO, a sum that had been hailed as a record raise. Generate itself outpaced Eikon Therapeutics’ $381 million earlier that same month, which at the time was called the largest since 2024. Other companies that have declared an intent to go public this year include Seaport Therapeutics, Hemab Therapeutics and Avalyn Pharma.
Whatever the IPO brings in, Kailera will add the sum to its $600 million series B round in October 2025, money that at the time was earmarked to advance its pipeline of obesity assets into late-stage development. Kailera hasn’t yet announced when the IPO window will close, but the company intends to trade on the Nasdaq Global Select Market under the symbol KLRA.
Kailera’s pipeline is led by ribupatide, a GLP-1/GIP receptor dual agonist being developed in partnership with China’s Jiangsu Hengrui Pharmaceuticals. The companies are currently advancing both injectable and oral versions of ribupatide.
Phase 2 data in February demonstrated a 12.1% reduction in weight at 26 weeks for patients on 25-mg or 50-mg ribupatide, whereas the placebo group hit 2.3% weight loss at this time point. The partners were emboldened by these findings to push the drug into late-stage studies.
Kailera expects to allot roughly $625 million for the development of injectable ribupatide, currently in three ongoing Phase 3 studies, into the second quarter of 2028, according to the updated prospectus. Meanwhile, around $150 million will go toward the pill form of ribupatide, for which a late-stage study is in the works and is expected to start in the second quarter of 2028.
Aside from ribupatide, Kailera is also advancing KAI-7535, a daily oral GLP-1 drug. Some $50 million will help push the pill through Phase 2. The rest of Kailera’s money will go toward other R&D activities and support general corporate operations, as per the prospectus.
Kailera was one of the buzziest startups to hit the scene with its October 2024 debut, carrying $400 million in starting funds. The biotech launched as a NewCo featuring Chinese assets, a startup method that has been rising in popularity as investors, pharmas and biotech leaders alike hunt for assets in the country.
Peer obesity startup Metsera sparked a wild bidding war last fall when Pfizer and Novo Nordisk duked it out to seal the M&A deal. Pfizer ultimately walked away with the prize, spending nearly $10 billion to buy Metsera and its pipeline of obesity medications.
