Waltham-based Kailera Therapeutics raises $625 million in IPO

Waltham-based Kailera Therapeutics, a biotech company entering the popular field of weight-loss drugs, raised $625 million through its initial public offering on April 17, one of the most successful biotech debuts in recent years.

The initial public offering was priced at the top of its marketed range, according to the Boston Globe. Kailera sold about 39 million shares at $16 each.

The company’s shares closed Friday at $26 each, a 63% increase over the IPO price, giving the company a market value of almost $3.1 billion.

Kailera, headquartered at 180 Third Ave. in Waltham, is developing injectable and oral therapies similar to the blockbuster treatments Wegovy and Zepbound, but hopes to improve on the performance of those drugs.

Chief Executive Officer Ronald Renaud told the Globe the company is focusing on patients with severe obesity. Improvements in tolerability of injectables would benefit these patients, particularly since pills are not as effective for them.

The company’s pipeline of drugs, including its lead candidate known as ribupatide, were developed in China by Hengrui Pharma. Kailera is Hengrui’s U.S. partner and has exclusive license to the products outside China. Kailera is, however, using a U.S.-based supply chain.

A CNBC story characterized Kailera’s results as “promising,” and called ribupatide a potential competitor to Eli Lilly’s injectable Zepbound. Both Zepbound and ribupatide work by activating two naturally produced hormones in the body (GLP-1 and GIP) that slow emptying of the stomach and diminish hunger signals in the brain. Ribupatide is in global Phase 3 trials.

Kailera is developing three additional drug candidates, two of which are administered orally. 

“Obesity is a chronic, progressive and debilitating disease that impacts over 1 billion people globally and requires long-term comprehensive treatment,” the company said on its website. “Since obesity is the driving factor for more than 200 comorbidities, our vision is to deliver category-leading obesity management medications that give people the power to restore their health and transform their lives.”

Founded in 2024, the company occupies 40,000 square feet in the Third Avenue complex of commercial buildings and had 145 full-time employees at the start of the year.

Affiliates of Bain Capital will own about a third of the company after the offering, according to the Globe. Kailera’s Renaud was chief executive officer of Cerevel Therapeutics until the close of its $8.7 billion acquisition by AbbVie Inc. in 2024.