Fractyl Health, which is developing a medical device and other therapies for type 2 diabetes and obesity, announced terms for its IPO on Monday.
The Lexington, MA-based company plans to raise $110 million by offering 7.3 million shares at a price range of $14 to $16. At the midpoint of the proposed range, Fractyl Health would command a fully diluted market value of $810 million.
Fractyl Health is a metabolic therapeutics company focused on pioneering new approaches to the treatment of metabolic diseases, including type 2 diabetes and obesity. Its lead candidate, the Revita DMR System, is an outpatient procedural therapy designed to durably modify duodenal dysfunction. Revita is approved for patients with inadequately controlled T2D in Europe. The company is currently enrolling a pivotal study of Revita in patients with inadequately controlled T2D, with topline data expected in the 4Q24, and plans to evaluate Revita in a clinical study for weight maintenance, expecting to submit an IDE and comparable documents to the FDA in the 1H24. Fractyl is also developing Rejuva, a novel, locally administered, adeno-associated virus delivered pancreatic gene therapy platform, and it plans to nominate its first candidate in the 1Q24.
Fractyl Health was founded in 2010 and plans to list on the Nasdaq under the symbol GUTS. BofA Securities, Morgan Stanley, and Evercore ISI are the joint bookrunners on the deal. It is expected to price during the week of January 29, 2024.
