City Therapeutics files for US IPO as biotech listings surge

Sept 24 (Reuters) - City Therapeutics filed ‌for a ​US initial ​public offering on Thursday, joining a rush of biotech firms lining up to tap the fall IPO window.

Biotech has been one ‌of the key themes of the IPO market this year ⁠amid renewed investor interest in the industry, although fall listings have struggled to gain momentum ‌as surging bond yields, a ‌tightening rate environment and concerns around the AI trade weigh on risk appetite.

"For a biotech with a promising therapeutic, a small change in interest ​rates or macro headwinds don't make much of a difference," said Matt Kennedy, senior ‍strategist at Renaissance Capital, a provider of IPO-focused research and ETFs.

"It ⁠really all boils down to whether the drug candidate is successful in the clinic. That and biotech ​sentiment, which is still riding high despite the pressure elsewhere in the IPO market."

Other drug developers Retension Pharmaceuticals, TRex Bio ​and Iambic Therapeutics earlier this month also unveiled ‌their US IPO filings, a key step ahead of a potential roadshow launch.

ADARx Pharmaceuticals, which is developing RNA-based drugs ⁠for rare diseases, is expected to go public on Friday.

Founded in 2023, City Therapeutics is advancing a pipeline of RNA-based drugs for rare diseases. Its most advanced product ⁠candidate, CITY-FXI, is in an early-stage trial to treat thrombosis, which is the formation of ​harmful clots inside a blood vessel.

The Cambridge, Massachusetts-based company has raised roughly $238.8 million since inception from life sciences investors, including ARCH Venture Partners, Fidelity Management & Research Company, Invus, and ‌Viking Global Investors.

"Aside from positive clinical results, IPO investors are looking for partnerships with large pharmas, which can increase ‌the likelihood of an acquisition down the road," Renaissance Capital's Kennedy said.

Goldman Sachs, Jefferies, ⁠Stifel and Oppenheimer are the ‌underwriters for the offering. ​The company will list on the Nasdaq under the symbol "CTY".

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Jonathan Ananda and ‌Maju Samuel)

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