Referred and endorsed by Lycra and Sanofi! Scribe Therapeutics (SCTX.US) is increasing the size of its IPO: raising approximately $129 million at the highest price, and will debut on the US stock market on Friday.

When AI concept stocks encountered a cold wave in the IPO market, Scribe Therapeutics Inc. (SCTX.US), co-founded by Nobel Prize-winning chemist Jennifer Doudna, has sparked a counter-trend surge on Nasdaq. This clinical-stage biotechnology company focusing on cardiovascular gene therapy announced on Thursday that it has successfully raised $128.7 million by issuing 8.58 million shares at a price of $15 per sharenot only pricing at the top end of the range but also significantly expanding the offering size from the original plan. This strong demand comes at a time when the biotech sector is outperforming AI-related IPOs with a weighted average return of 55%, making it the biggest winner in the US stock market in 2026. IPO Details: Expanded Offering, High End Pricing, Simultaneous Investment from Sanofi Scribe Therapeutics initially announced IPO terms on July 21, planning to issue 7.2 million shares at a price of $13 to $15 per share, raising approximately $100 million. However, strong demand from investors led the company to expand the offering sizeeventually issuing 8.58 million shares priced at $15 at the top end of the range, raising a total of $128.7 million. According to the official announcement from Nasdaq, the underwriters of this IPO have a 30-day overallotment option to purchase up to an additional 1.287 million shares. Leerink Partners, Goldman Sachs Group, Inc., Guggenheim Securities, and Wells Fargo & Company acted as joint bookrunners. The stock officially began trading on Nasdaq Global Market on July 24 with the symbol "SCTX," and is expected to settle on July 27. It is worth noting that French pharmaceutical giant Sanofi (SNY.US) simultaneously purchased 500,000 shares at the same price of $15 per share through a private placement in the IPO. Both Sanofi and Eli Lilly are existing strategic partners of Scribe. Eli Lilly (LLY.US), which owns approximately 12.4% of Scribe's shares, expressed intentions to increase its stake in this IPO to maintain a holding of up to about 11% after the IPO and the placement are completed. Technology Platform: Epigenetic SilencingCRISPR Therapy Without "Gene Scissors" Scribe Therapeutics was co-founded by Doudna and CEO Benjamin Oakes in 2017. Different from traditional CRISPR gene editing, Scribe's technology platform employs an epigenetic silencing strategytargeting specific genes with an engineered CRISPR system to regulate gene expression without permanently cutting or altering DNA. The company claims that this approach has significant advantages in terms of safety and can expand the applicable patient population. The company's core candidate drug, STX-1150, targets the PCSK9 genea clinically validated cholesterol-regulating target. By using epigenetic silencing to regulate PCSK9 gene expression, STX-1150 aims to achieve long-lasting reduction of low-density lipoprotein cholesterol (LDL-C). In preclinical studies in non-human primates, STX-1150 achieved up to 90% PCSK9 inhibition and a maximum of 68% LDL-C reduction, with over 50% LDL-C reduction achieved at the lowest dose, lasting for more than 22 months. STX-1150 has received approval from the Therapeutic Goods Administration (TGA) of Australia to conduct its first human clinical trial, marking a key milestone for Scribe entering the clinical stage. The Phase I trial is an open-label, single-dose escalation study, with plans for up to 64 participants recruited at trial sites in Australia and New Zealand. The company expects to announce initial clinical data in the first half of 2027. In addition to STX-1150, Scribe has two follow-up projects in development, STX-1200 and STX-1400, targeting lipoprotein(a) and triglycerides, respectively, with Phase I clinical trials expected to be initiated in 2027 and 2028. Strategic Value: "Double Endorsement" from Eli Lilly and Sanofi The deep involvement of two major pharmaceutical giants provides important endorsement for Scribe's IPO. Eli Lilly has had a strategic partnership with Scribe since 2025, with the collaboration reaching a successful milestone for the second in vivo project. Sanofi, on the other hand, invested $7.5 million through a private placement in the IPO. Both pharmaceutical companies are not only financial investors but also important partners in validating Scribe's technology platform and potential commercialization path. From a financial perspective, Scribe generated approximately $36 million in collaboration revenue over the past 12 months ending March 31, 2026, which is rare for a clinical-stage biotechnology company without products on the market. However, the company is still in a net loss positionwith collaboration revenue of $2.2 million and a net loss of $17.4 million in the quarter ending March 31, 2026, and collaboration revenue of $17.1 million and a net loss of $3.5 million in the same quarter last year. The company anticipates that proceeds from the IPO and private placement will be sufficient to support its operations and capital expenditures until the first half of 2029. Sector Background: Biotech IPOs Outperform AI with 55% Return The successful listing of Scribe is not an isolated event but a reflection of the comprehensive recovery of the biotech IPO market in 2026. Data shows that the weighted average return of US biotech and pharmaceutical company IPOs since 2026 is as high as 55%, while the overall weighted average return of the US IPO market (excluding SPACs and other financial instruments) is a loss of 4.4%. This contrast indicates that the biotech sector has outperformed the market by nearly 60 percentage points. In contrast, AI-related IPOs, which were once highly anticipated, have performed poorly. The ten largest IPOs in the US in 2026 (led by SpaceX's record-breaking listing) had an average price-weighted decline of 6.3%, raising concerns about whether the AI rally has been overextended. Jack Bannister, Senior Managing Director of Equity Capital Markets at Leerink Partners, stated: "This is the healthiest biotech IPO market we have seen in a long time." The strong performance of the biotech sector can be attributed to multiple factors: a 13% increase in the Nasdaq Biotech Index, a more stable regulatory environment, and investor interest in platform companies with clear clinical pathways and significant potential markets. At least six biotech companies, with CRISPR gene therapy developer Scribe at the forefront, have submitted IPO applications in July and are expected to complete pricing before the end of summer.