Our Take
Odyssey's successful second attempt signals biotech IPO windows open fast when they do, but the company still has zero drugs in human trials beyond its lead program.
Why it matters
Biotech companies sitting on withdrawn IPO filings now have a playbook for timing re-entry. The immunology sector specifically is seeing outsized investor appetite with $879M raised across IPOs this year versus $174M in 2023.
Do this week
Biotech CFOs: Review your withdrawn S-1 filings before Q1 2025 earnings season so you can capitalize on the current immunology IPO premium.
Odyssey priced at $18 per share after 2023 withdrawal
Odyssey Therapeutics raised $279 million through its IPO on Thursday, selling 15.5 million shares at $18 each. The company added another $25 million via a concurrent private placement at the same price. Trading begins Friday on Nasdaq under ticker ODTX.
The biotech originally filed for an IPO in early 2023 but withdrew in June. CEO Gary Glick wrote in an SEC filing that going public was "not in the best interests" of Odyssey at that time. The company instead raised $213 million in Series D funding three months later.
Odyssey has now raised $727 million in venture funding since its 2021 launch, backed by OrbiMed and SR One. Glick previously led multiple drug startups that were later acquired.
Biotech IPO sizes jump despite flat volume
Only 11 biotech companies went public in 2023 (per BioPharma Dive data), the lowest count since at least 2018. But 2024 shows a different pattern: while IPO volume remains flat at 11 companies, deal sizes have surged. Six of the 11 biotechs this year raised over $300 million, a threshold rarely crossed in recent years.
Immunology-focused biotechs specifically captured $879 million in IPO proceeds this year versus $174 million in 2023 (company-reported figures). More than half of 2024's biotech IPOs now trade above their offering price, with Veradermics up more than six-fold since debut.
"The more data points we have about IPOs being successfully executed and performing well in the after markets validates that this part of the overall funding cycle is working," said Simeon George, co-founder of SR One, Odyssey's largest shareholder.
Lead program targets innate immune system
Odyssey's pipeline focuses on the innate immune system rather than the adaptive immune response targeted by most current autoimmune therapies. The company argues this approach addresses "fundamental limitations" of existing treatments, including broad immune suppression and failure to target core disease drivers.
Lead candidate OD-001 blocks RIPK2, a signaling protein in the innate immune system linked to inflammatory bowel disease and treatment resistance. The drug is in mid-stage testing for ulcerative colitis as a monotherapy, with a combination study alongside Takeda's Entyvio planned for later this year.
Odyssey has five additional experimental treatments for conditions including atopic dermatitis and COPD, though none have entered human testing. One lupus candidate could start Phase 1 trials next year (per company prospectus).