TRB-051

TRex Bio priced its initial public offering (IPO) at the bottom end of its predicted range, with the sale of 8.3 million shares at $14 a piece set to bring in around $117 million. When setting the terms of its public debut at the start of the week, the top of the biotech's range of $16 per share would have netted it $125 million.However, TRex said that proceeds from the IPO could rise if underwriters choose to fully take up their option to buy an additional 1.3 million shares at the same price. The company's common stock is expected to begin trading on the Nasdaq under the ticker "TRXB."TRex, which joined the IPO queue last month, plans to use the proceeds to move its lead regulatory T-cell (Treg) therapy TRB-061 through Phase II testing in atopic dermatitis and alopecia areata. The selective TNFR2 agonist Fc-fusion protein is designed to activate and expand Tregs in inflamed tissues. Funds will also be used to start a Phase I study of its earlier asset, TRB-071, a CD30 agonist intended to induce expansion and increase immune-regulatory activity in Tregs while also inhibiting the inflammatory action of CD30L. The biotech hopes to start a clinical trial of TRB-071 in the first half of 2027. Prior to the IPO, TRex closed a $50-million financing in January, which saw support from existing partner Eli Lilly. The parties entered a research agreement in 2023, with Lilly paying $55 million upfront for exclusive, worldwide rights to TRB-051, an immune effector cell modulator. Retension's oversized offeringRetension Pharmaceuticals will also be joining TRex on the Nasdaq on Friday under the ticker "RTSN," having priced its oversized IPO at the midpoint of its previously disclosed range. The biotech said that it will sell around 3.8 million shares — up from 3.3 million earlier — at $12 a piece, right in the middle of its anticipated range of $11 to $13, for proceeds of $45 million.In addition, the amount raised could rise if underwriters choose to purchase up to an additional 562,500 shares at the IPO price.Retension indicated that proceeds from the IPO will be used to complete a Phase IIb study of RTN-001 in uncontrolled hypertension (uHTN) and prepare for late-stage development. The PDE5 inhibitor, which leverages a well-established mechanism of enhancing nitric oxide signalling, is designed to preferentially target central cardiovascular arteries that determine blood pressure, addressing key limitations of similar first-generation therapies.

TRex Bio set terms for its public debut on Monday, hoping to rake in $125 million to support development of a pair of therapies designed to augment regulatory T cells (Tregs) and treat autoimmune and inflammatory diseases.The biotech, which joined the IPO queue last month, proposed in a securities filing to sell 8.3 million shares between $14 and $16 each. At the midpoint, TRex would raise $125 million and boast a fully diluted market value of $453 million.The drugmaker is following close behind ADARx Pharmaceuticals, which raised $446.3 million in its public debut late last month (see – Spotlight On: Investors regain appetite for biotech IPOs).Big pharma backingTRex's offering will see support from Eli Lilly, which has signalled its interest in purchasing shares totalling about $13 million.In addition to participating in TRex's $50-million financing in January, the US pharma inked a research agreement with the biotech in 2023, paying $55 million upfront for exclusive, worldwide rights to TRB-051, an immune effector cell modulator. TRex received a $15-million payment in mid-2024 when Lilly moved the candidate into a Phase I trial. It's eligible for a further $577.5 million in development, commercialisation and sales milestones — and it's likely to see some of that cash soon. By year-end, Lilly plans to move TRB-051 into a Phase IIa clinical trial in lupus with cutaneous involvement, TRex said in the filing. Treg pipelineTRex plans to use the IPO proceeds to move its lead Treg therapy through Phase II testing in atopic dermatitis (AD) and alopecia areata, while also starting a Phase I healthy volunteer study of its earlier asset, TRB-071.The most advanced programme is TRB-061, a selective TNFR2 agonist Fc-fusion protein designed to activate and expand Tregs in inflamed tissues. Because the experimental treatment has the potential to restore immune balance without stimulating immune cells, the company thinks it could help treat a variety of autoimmune and inflammatory diseases, though it's focusing initially on AD. TRB-061 is being studied in a Phase Ia/b trial involving healthy volunteers and patients with moderate-to-severe AD, with topline data due in mid-2027. The second candidate, TRB-071, is a CD30 agonist intended to induce expansion and increase immune-regulatory activity in Tregs while also inhibiting the inflammatory action of CD30L. The mAb's ability to activate Tregs and restore immune balance while tamping down on inflammatory signalling, TRex said, suggests it can address the underlying immune dysregulation in diseases such as inflammatory bowel disease. TRex is hoping to bring TRB-071 to the clinic in the first half of 2027.