Eikon IPO: shares of the Merck veteran-led biotech become available

Preliminary trading in shares of Eikon Therapeutics, which specializes in developing therapies for various types of cancer, has begun on the Freedom client trading system. Eikon was the second biotech company to go public this year, following Aktis Oncology, Fierce Biotech notes. Later on Feb. 5, Eikon Therapeutics securities will appear on the Nasdaq under the ticker EIKN.

Eikon Therapeutics, a biotechnology company specializing in oncology, has successfully raised $381.2 million in an IPO. The company offered 21.2 million shares at $18 per paper, which corresponds to the upper end of the previously announced price range ($16-18). Based on the IPO results, the value of the entire company can be estimated at $971.7 million, Bloomberg reports.

The listing was organized by JPMorgan, Morgan Stanley, BofA Securities and Cantor, among others.

Eikon has established itself as an experienced fundraiser, Fierce Biotech notes: the company raised $517 million in investments in 2022, $106 million in 2023, and $350 million last February. It also received $350.7 million in Series D round investments in early 2025, with participation from Lux Capital, Foresite Capital, Soros Capital and funds managed by T. Rowe Price. As of Sept. 30 last year, Eikon had $375.9 million in cash, cash equivalents, and short-term investments, Bloomberg notes.

Eikon Therapeutics, which specializes in developing potential treatments for various cancers, was founded in Millbrae, California, in 2019 by Nobel Prize-winning chemist Eric Betzig, along with scientists Xavier Darzak, Luke Lavis and Robert Tian, Reuters writes. In 2021, the company was headed by former top executive at pharmaceutical giant Merck & Co. and Roger Perlmutter, MD. Eikon's chief medical officer was former Merck executive Roy Baines, Fierce Biotech points out. Previously, together with Perlmutter, he participated in the development of pembrolizumab (known under the brand name Keytruda) - one of the world's best-selling drugs for oncology therapy, Bloomberg specifies.

Eikon is developing a line of drugs for the treatment of various types of cancer. Among them is EIK1001 - the company's lead drug candidate - which is in its third and final phase 3 clinical trial studying the therapy for metastatic melanoma, as well as a phase 2 study for the treatment of non-small cell lung cancer, according to the company's prospectus filed with the U.S. Securities and Exchange Commission (SEC). Initial results from the EIK1001 trial look encouraging, Seeking Alpha wrote - it showed 60 percent efficacy and limited side effects. No factors indicating the need for dosage restrictions have been identified.

Eikon is also developing two other drugs, EIK1003 and EIK1004, according to the publication. They are being tested in early-stage trials for the treatment of ovarian, breast, prostate and pancreatic cancers. EIK1004 is being studied separately in brain tumors. The company's fourth drug, EIK1005, is an Eikon innovation. It is still in early-stage trials and is intended to treat a variety of solid tumors, Fierce Biotech adds.

Eikon's IPO comes amid a revitalization of the biotech market in early 2026, Reuters notes. In January, SpyGlass Pharma (ophthalmology), AgomAb Therapeutics (immunology and oncology) and Veradermics (dermatology) also announced plans to go public. In addition, in January, Aktis Oncology, a company that also develops therapies for oncology, previously backed by pharma giant Eli Lilly, listed on Nasdaq.

Eikon is emphasizing its own R&D base, built on the work of co-founder Nobel laureate Eric Betzig, which could accelerate the search for new drugs to develop and license, said IPOX Research analyst Lukas Muehlbauer (quoted by Reuters). This could be an additional driver of interest for long-term investors, he said. The main "factor of interest for investors", the analyst called the company's CEO Roger Perlmutter, who previously headed research at Merck. Today, he is considered one of the key architects of the success of the anti-cancer drug Keytruda, the agency points out.

"The company's financial results are typical of a development-stage biopharma - with no revenue and high research expenses. That said, Eikon remains well-capitalized through venture capital investments, and the IPO should further strengthen its financial strength," says Donovan Jones, head of IPO Edge's IPO group (quoted in Seeking Alpha).

Freedom Finance analyst Alem Bektemirov notes that at the offering price of $18, the company's shares have a 20% upside potential. According to him, the key risks for Eikon are disapproval of the drug by regulators, weak research results, as well as future competition in the market.

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Freedom clients will be able to get access to Eikon Therapeutics shares before the opening of the main exchange session. Trading will begin in the early pre-market format 2-3 hours before the U.S. exchanges open (from 15:30-16:30 Astana time). To participate, click on the ticker EIKN.

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