Weight-loss drugmaker Carmot Therapeutics is exploring an initial public offering, according to people with knowledge of the matter.
The Berkeley, California-based biotechnology company is working with underwriters including JPMorgan Chase & Co. and Bank of America Corp. on a listing that would likely take place next year, though plans could be accelerated if market conditions allow, said the people, who asked not to be identified because the information is private.
Carmot has in recent weeks also received takeover interest from large pharmaceutical companies giving it a value of at least $1 billion and could opt to sell instead, some of the people said. A final decision on pursuing an IPO or sale hasn’t been made.
Representatives for JPMorgan and Bank of America declined to comment. A representative for Carmot didn’t immediately respond to requests for comment.
Carmot is developing injectable treatments in the so-called GLP-1 class of drugs for obesity and for both types of diabetes. Its most advanced candidates are still in mid-stage trials, according to its website.
A potential sale or offering comes amid broad excitement about the multibillion-dollar market for obesity treatments after blockbuster successes from Eli Lilly and Novo Nordisk A/S that have added of billions of dollars to their market capitalizations over the past few months. Sales of obesity drugs could reach $77 billion by 2030, Morgan Stanley analysts predicted in a Sept. 6 report.
Shares of Carmot competitor Structure Therapeutics Inc. surged to a record high Friday after it released positive data on its oral weight-loss drug.
Carmot in June named Michael Gray chief financial officer. Gray was formerly CFO of Imara Inc., and Carmot noted that he was “instrumental in transitioning the private company through its IPO.” Imara has since merged with Enliven Therapeutics.
The company in May raised $150 million at a post-money valuation of $1.25 billion, PitchBook data shows. It counts Deep Track Capital, Franklin Templeton, Janus Henderson Investors, Millennium Management and Venrock Healthcare Capital Partners among investors.
Author: Michelle F. Davis and Gillian Tan