The Zhitong Finance App learned that when AI concept stocks hit a cold wave in the IPO market, CRISPR gene editing company Scribe Therapeutics Inc. (SCTX.US), co-founded by Nobel Prize winner Jennifer DouDNA, set off a wave of contrarian trends on NASDAQ. The clinical-stage biotech company, which focuses on gene therapy for cardiovascular diseases, announced on Thursday that it has successfully raised $128.7 million by issuing 8.58 million shares at a price of $15 per share — not only is the pricing at the highest end of the range, but the distribution scale is also significantly larger than originally planned. This strong demand comes at a time when the biotech sector is crushing AI-related IPOs with a weighted average return of 55%, becoming the biggest winner in US stocks in 2026.
IPO details: expanded distribution, high-end pricing, simultaneous investment by Sanofi
Scribe Therapeutics initially announced the IPO terms on July 21. It plans to issue 7.2 million shares at a price of 13 to 15 US dollars each, and raise about 100 million US dollars. However, strong demand from investors drove the company to expand its offering — eventually issuing 8.58 million shares, which was priced at the top of the range at $15, and raised a total of $128.7 million.
According to Nasdaq's official announcement, the underwriters of this IPO also received a 30-day over-allotment option and can subscribe for up to 1.287,000 additional shares. Leerink Partners, Goldman Sachs, Guggenheim Securities, and Wells Fargo acted as joint bookkeepers. The stock officially began trading on the NASDAQ Global Market on July 24. The code is “SCTX”, and delivery is expected to be completed on July 27.
Notably, at the same time as the IPO, French pharmaceutical giant Sanofi (SNY.US) purchased 500,000 shares through a private placement at the same price of $15 per share. Both Sanofi and Eli Lilly are Scribe's current strategic partners. As an existing shareholder holding about 12.4% of Scribe's shares, LLY.US (LLY.US) indicated its intention to increase its holdings in this IPO so as to maintain a shareholding of up to 11% of Scribe after the completion of the IPO and placement.
Technology Platform: Epigenetic Silence - CRISPR Therapy Without Using “Genetic Scissors”
Scribe Therapeutics was co-founded by DouDNA, CEO Benjamin Oakes and others in 2017. Unlike traditional CRISPR gene editing, Scribe's technology platform uses an epigenetic silencing (epigenetic silencing) strategy — targeting specific genes through an engineered CRISPR system to regulate gene expression without permanently cutting or altering DNA. The company claims that this method has significant safety advantages and can expand the applicable patient population.
The company's core drug candidate, STX-1150, targets the PCSK9 gene — a clinically proven cholesterol regulation target. By epigenetically silencing PCSK9 gene expression, STX-1150 aims to achieve long-lasting low density lipoprotein cholesterol (LDL-C) reduction. In preclinical studies on non-human primates, STX-1150 achieved up to 90% inhibition of PCSK9 and a maximum LDL-C reduction of 68%. LDL-C reduction of more than 50% was achieved at the lowest dose, and lasted more than 22 months.
The STX-1150 has been approved by the Australian Therapeutic Goods Administration (TGA) to conduct its first human clinical trial, a key milestone in Scribe's entry into the clinical phase. The Phase I trial is an open label, single dose escalation study. Subsequent expansion phases plan to recruit up to 64 participants at test sites in Australia and New Zealand. The company expects to release preliminary clinical data in the first half of 2027.
In addition to STX-1150, Scribe also has two follow-up research projects STX-1200 and STX-1400, which target lipoprotein (a) and triglycerides, respectively. Phase I clinical trials are expected to commence in 2027 and 2028, respectively.
Strategic value: Eli Lilly and Sanofi's “double endorsement”
The deep participation of the two major pharmaceutical giants provided an important credential endorsement for Scribe's IPO. Li Wei has established a strategic partnership with Scribe since 2025, and the cooperation between the two parties has reached a successful milestone for the second in-house project. Sanofi, on the other hand, invested 7.5 million US dollars to purchase shares in a private placement at the same time as the IPO. The two major pharmaceutical companies are not only financial investors, but also important partners in the verification and potential commercialization path of the Scribe technology platform.
From a financial perspective, Scribe has achieved approximately $36 million in cooperative revenue in the past 12 months up to March 31, 2026, which is rare among clinical-stage biotech companies that have yet to launch a product. However, the company is still in a net loss — in the quarter ended March 31, 2026, Scribe's cooperative revenue was US$2.2 million, with a net loss of US$17.4 million; compared to the same period last year, the cooperative revenue was US$17.1 million, with a net loss of US$3.5 million. The company predicts in the document that the proceeds from the IPO and private equity will be sufficient to support its operations and capital expenses until the first half of 2029.
Sector background: Biotech IPOs crush AI with 55% return
Scribe's successful listing was not an isolated event; it was a microcosm of the full recovery of the biotech IPO market in 2026. According to the data, since 2026, the weighted average return on IPOs of US biotech and pharmaceutical companies has reached 55%, while the overall weighted average return of the US IPO market after excluding financial instruments such as SPAC is a loss of 4.4%. This contrast meant that the biotech sector outperformed the market by nearly 60 percentage points.
In contrast, the performance of AI-related IPOs, which were once highly anticipated, was poor. The 10 largest US IPOs in 2026 (led by SpaceX's record listing) fell by a weighted average of 6.3%, and market concerns about whether the AI rally will be overextended are growing.
“This is the healthiest biotech IPO market we've seen in a long time,” said Jack Bannister, senior managing director of equity capital markets at Leerink Partners. The strong performance of the biotech sector was due to multiple factors: the Nasdaq Biotech Index rose 13% during the year, a more stable regulatory environment, and strong investor interest in platform-based companies with clear clinical pathways and significant potential markets.
At least six other biotech companies (led by CRISPR gene drug developer Scribe) have submitted IPO applications in July and are expected to complete pricing before the end of summer.