June 9 (Reuters) – Drug developer Parabilis Medicines is targeting a valuation of up to nearly $2.3 billion in its upsized initial public offering in the U.S., as biotech IPOs continue to run hot.
The Cambridge, Massachusetts-based company is now marketing 33.3 million shares priced between $17 and $19, it said on Tuesday. It had earlier planned to sell 25 million shares.
The biotech IPO market has bounced back strongly after a choppy 2025 as a string of well-received listings such as those of Kailera and Veradermics has encouraged more drug developers to test the waters.
“The upsize is another strong signal that the biotech IPO pipeline is much healthier than it was last year. Still, aftermarket performance has been skewed towards the larger, better-backed deals, meaning investors are willing to fund biotech again, but they are being selective,” IPOX Research Associate Lukas Muehlbauer told Reuters.
Parabilis’ pipeline is focused on various cancers and tumors. It plans to evaluate other therapeutic areas.
Its lead candidate, zolucatetide, is being evaluated in trials for multiple solid tumors, with more than 150 patients dosed to date.
Formerly known as Fog Pharmaceuticals, Parabilis was co-founded in 2015 by longtime Harvard professor Greg Verdine. The firm has raised over $800 million from investors including ARCH Venture Partners, Fidelity Investments, GV and RA Capital.
Parabilis last month struck a partnership with drugmaker Regeneron Pharmaceuticals, wherein it could receive up to $2.2 billion in milestone payments to develop new treatments for hard-to-reach diseases.
“Parabilis stands out by bringing a lot of credibility to the table with the Regeneron partnership, externally validating the company’s technology,” Muehlbauer said.
Leerink Partners, BofA Securities, Evercore ISI, Guggenheim Securities and LifeSci Capital are the underwriters. Parabilis is expected to begin trading on the Nasdaq under the symbol “PBLS” on Wednesday.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Sahal Muhammed)
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