Electra sets terms for IPO, hoping to raise up to $347m

US biotech Electra Therapeutics has moved ahead with plans for an IPO on the Nasdaq, seeking to raise funds for its drug candidate for the rare inflammatory disease secondary haemophagocytic lymphohistiocytosis (sHLH).

The South San Francisco, California-based company plans to offer 21.7 million shares at a price range of $14 to $16, and could have a valuation approaching $1 billion if the IPO comes in at the top end of that range.

The proceeds are earmarked for Electra's ongoing phase 2/3 trial of pan-SIRP-antibody ipsoprubart (also known as ELA026) in sHLH, a hyperinflammatory disease that is usually triggered by another illness – such as an infection, autoimmune disease, or cancer – and can result in sepsis-like symptoms that can be life-threatening.

Ipsoprubart is vying to become the first drug in the class to reach the market and is thought to work in sHLH by depleting pathological myeloid cells and T cells that play a role in the pathology of sHLH. In a phase 1b trial involving 12 patients, the antibody achieved a 100% eight-week overall survival rate and a 100% overall response rate when used as a frontline therapy for the disease.

Electra's pivotal study, called SURPASS, is currently enrolling patients at research sites across the US and Europe.

There are currently no approved therapies for sHLH, and current treatment strategies for the disease based on high-dose steroids, immunosuppressants, and intravenous Immunoglobulin (IVIG) are associated with significant long-term toxicity and limited efficacy. Even with these treatments, sHLH has high mortality during the first few months. Some forms, notably those associated with cancer, have a mortality rate of up to 50% within two months

Meanwhile, the company is also testing ipsoprubart in a phase 1 clinical trial in patients with T-cell and natural killer-cell malignancies, and has a follow-up programme – SIRP gamma-specific antibody ELA822 – in early-stage clinical testing for chronic T-cell-mediated immune disorders.

The planned IPO comes after Electra raised $183 million in a Series C that completed last October, as it started dosing patients in SURPASS. That followed an $84 million Series B that closed in 2022, shortly after the company was spun out of parent company Star Therapeutics.

The company, which plans to list on the Nasdaq under the symbol ETRA, said it expects to finalise the IPO price on Thursday (17th September).