Bambusa IPO: Dermatology biotech to debut on the Nasdaq

Early trading in shares of Bambusa Therapeutics, which is developing a new treatment for atopic dermatitis, has started on the Freedom client trading platform. The start-up was founded in 2024 by former senior executives of Germany’s BioNTech and China’s Biotheus, the latter providing its drug candidates. Bambusa will debut during the Nasdaq regular session later on Friday under the ticker BBTX.

Biotech Bambusa Therapeutics raised $168.9 million in its Nasdaq IPO, selling 10.55 million shares at $16 apiece, the midpoint of its previously announced price range. The offering values the company at $815 million, according to Bloomberg’s calculations.

BofA Securities, Evercore ISI, UBS Investment Bank, and Cantor underwrote the offering. They received a 30-day option to purchase up to 1.58 million additional shares.

Bambusa plans to use the proceeds to continue clinical trials of its two lead drug candidates: BBT001 for atopic dermatitis and chronic spontaneous urticaria, and BBT002, which it is studying in patients with respiratory diseases, according to the prospectus. Both candidates are in early-stage clinical trials.

Bambusa Therapeutics is a young company. Former senior executives of China’s Biotheus and Germany’s BioNTech, which developed a COVID-19 vaccine with Pfizer, founded it in 2024, just months before BioNTech announced its acquisition of Biotheus. That deal was aimed at acquiring the Chinese company’s oncology pipeline, in particular a drug candidate described as a “potential Keytruda killer,” referring to U.S. drugmaker Merck’s flagship treatment.

Biotheus was also developing a pipeline of anti-inflammatory drugs based on the same technology. Bambusa obtained the rights to two candidates from that pipeline, BBT001 and BBT002. The start-up later identified two more drug candidates in collaboration with BioNTech Zhuhai, as Biotheus was renamed after the acquisition. It plans to begin clinical trials of one by the end of this year and the other in 2027.

As of June 30, Bambusa had raised $136.1 million from investors including venture fund Athos, hedge fund BVF Partners, and KKR-controlled investment platform Dawn Biopharma, according to its IPO filing.

Bambusa’s investment appeal owes to the popular biotech theme of developing next-generation antibodies for inflammatory diseases, a market currently dominated by blockbuster drugs such as Sanofi and Regeneron Pharmaceuticals’ Dupixent, International Financing Review (IFR) writes.

Bambusa’s main risk is that its clinical trials could fail or its drug candidates could be denied regulatory approval, says Freedom analyst Alem Bektemirov. The house has set a target price of $18.10 per share, implying 13% upside from the IPO price.

IFR also sees risks in the company’s financial position. Although the management states that its $71.5 million in cash will be sufficient to fund operations for at least the next 12 months, the prospectus discloses doubts about its ability to continue as a going concern, IFR notes. At the same time, Bambusa’s management expects the IPO proceeds, together with its existing funds, to finance operations into late 2028.

_______________________

Freedom clients can trade Bambusa shares before the start of the main U.S. session. Premarket trading will open 2-3 hours early, at 15:30-16:30 Astana time. To start trading, select the symbol BBTX on the Freedom trading platform.