Odyssey Therapeutics withdraws IPO amid market uncertainty

USA – Odyssey Therapeutics has decided not to proceed with its long-awaited initial public offering (IPO), citing unfavorable market conditions.

The biotech company, which focuses on autoimmune and inflammatory diseases, informed the Securities and Exchange Commission (SEC) on Monday that the IPO is no longer in its best interests at this time.

Odyssey initially announced its public listing ambitions in January, joining a wave of biotech firms looking to raise capital.

However, market experts had already predicted difficulties, citing economic turbulence associated with President Donald Trump’s tariff policies. These concerns have limited the number of successful biotech IPOs in 2025.

The company had planned to use IPO funding to support its drug pipeline, including its RIPK2 inhibitor, which is advancing to phase 2 trials for ulcerative colitis, both as a monotherapy and in combination with Takeda’s Entyvio.

Strategic acquisitions and partnerships

Despite the setback, Odyssey has strengthened its capabilities through strategic acquisitions. It previously purchased Rahko, a firm specializing in machine learning, and IFM Discovery, which focuses on MDA5 and NLRP1 discovery programs.

IFM Discovery was a subsidiary of IFM Therapeutics, founded by Odyssey CEO Gary Glick, Ph.D.

Glick, who also founded Scorpion Therapeutics, saw his former company acquired by Eli Lilly for up to US$ 2.5 billion. Meanwhile, Odyssey has secured major pharma collaborations, including:

• US$ 6.5 million from Johnson & Johnson to enhance small molecule research using AI.
• US$ 1 million from Pfizer in a partnership to explore novel natural product-based drug candidates.

Other biotech IPO performances

Odyssey’s IPO cancellation contrasts with other biotech firms that successfully went public earlier this year.

• Sionna Therapeutics, specializing in cystic fibrosis treatments, raised US$ 219.2 million in its February IPO but saw its stock drop below its initial US$ 18 price, closing at US$ 16.46 on Monday.
• Metsera Therapeutics, which focuses on weight-loss drugs, saw its stock surge 66%, rising from a US$ 18 debut to US$ 30 following strong clinical trial results.
• Maze Therapeutics, a biotech focused on kidney disease, faced challenges, with its shares dropping 20%, closing at US$ 12.81—below its US$ 16 IPO price.