Key facts
- Kardigan raised $400 million in an upsized U.S. IPO.
- The offering priced at $16 per share, the top of its marketed range.
- Kardigan's shares opened at $16.25 and were up 31% above the IPO price.
- The company is developing precision medicines for cardiovascular diseases.
- Kardigan has three late-stage experimental therapies: danicamtiv, ataciguat, and tonlamarsen.
Kardigan's shares surged 31% above their initial public offering price on Thursday, following an upsized U.S. IPO that raised $400 million. The heart drug developer's stock opened at $16.25, exceeding its IPO price of $16 per share, and continued to trade higher. This strong market debut indicates renewed investor interest in biotech companies with advanced clinical programs, as market conditions improve for initial public offerings in the sector.
Kardigan, based in Princeton, New Jersey, is focused on developing precision medicines for cardiovascular diseases and has three late-stage experimental therapies in its pipeline: danicamtiv, ataciguat, and tonlamarsen. CEO Tassos Gianakakos stated that going public provides access to long-term investors and capital to advance their mission, with important data expected from all programs in the first half of next year.
Gianakakos and Chief Medical Officer Jay Edelberg previously helped develop the heart drug mavacamten at MyoKardia, which was acquired by Bristol Myers Squibb for $13 billion in 2020. IPOX Research Associate Lukas Muehlbauer noted that Kardigan is raising money now because it would not have cash reserves to fund operations for at least 12 months. He also cautioned that potential follow-on offerings could act as an overhang.