Fractyl Health Stumbles on IPO
Metabolic therapeutics company, Fractyl Health (Nasdaq: GUTS), began its first day of trading on Thursday last week with a mixed response from the market. The company priced its 7,333,333 shares of common stock at $15 per share, enabling it to bring in about $110 million from the IPO, but stumbled in intraday trading, falling by 13.3% during the session. Fractyl’s share price rose 4.20% in after hours trading.
The company, which moves into an increasingly crowded space, is pioneering breakthrough therapies to treat Type 2 diabetes and obesity and is currently conducting a pivotal clinical study to evaluate an investigational endoscopic procedure called Revita, a non-drug procedure that may help improve blood sugar without increasing medicines or insulin.
Fractyl says it plans to use the proceeds of the IPO to complete a 1,000-person study of Revita to support an FDA approval application. Revita is CE Marked and available in Germany and the company is working to introduce it to a US market. Fractyl stated that funds would also go towards preclinical development of its GLP-1-based pancreatic gene therapy, Rejuva.
Fractyl’s market cap stands at $611.753 million and more than 2.9 million shares changed hands on Friday.
About Fractyl Health
Fractyl Health is a metabolic therapeutics company focused on pioneering new approaches to the treatment of metabolic diseases, including T2D and obesity. Despite advances in treatment over the last 50 years, T2D and obesity continue to be rapidly growing drivers of morbidity and mortality in the 21st century. Fractyl Health’s goal is to transform metabolic disease treatment from chronic symptomatic management to durable disease-modifying therapies that target the organ-level root causes of disease. Fractyl Health is based in Lexington, MA.
