MBX Biosciences shares surge 44% in blockbuster Nasdaq debut

Shares of MBX Biosciences MBX.O, which is developing rapies that target endocrine and metabolic disorders, including diabetes and obesity, jumped nearly 44% in ir Nasdaq debut on Friday.

upbeat debut underscores investors' growing focus on weight-loss drugs after proving to be an effective obesity treatment and showing potential to reduce stroke or heart attack risks.

stock opened at $23 apiece, valuing biotech firm at about $694 million.

MBX said on Thursday it h raised $163.2 million by selling 10.2 million shares at $16 apiece — high-end of its targeted range of $14 to $16 each — in its initial public offering.

U.S. IPO market is on a route to recovery, albeit uneven, after a two-year dry spell, on hopes of a possible rate cut by Federal Reserve and lower market volatility.

MBX's success fares well for IPO market that went into a tritional summer lull following debut of cold stor real estate investment trust LineLINE.O in July, biggest this year.

MBX's le experimental candidate, MBX 2109, is being developed to treat chronic hypoparathyroidism — a condition in which body produces insufficient levels of parathyroid hormone that disrupts calcium levels in blood and bones.

company is also developing MBX 4291, an experimental rapy for treatment of obesity. rapy mimics effect of two gut hormones, GLP-1 and GIP.

Eli Lilly's LLY.N tirzepatide, sold as Zepbound for weight loss and Mounjaro for diabetes in United States, also mimics function of se two gut hormones.

Wall Street estimates annual global sales of $150 billion for weight-loss drugs by early 2030s.

Separately, Bristol-Myers Squibb-backed Zenas BioPharma also debuted on Nasdaq, with its shares rising nearly 8%.