Eikon Therapeutics, a drug developer led by former Merck research chief Roger Perlmutter, saw its shares open at $17.05 on the Nasdaq, 5.3% below the initial offer price of $18. The Millbrae, California-based company sold approximately 21.2 million shares in an upsized initial public offering (IPO), raising $381.2 million after pricing at the top of its marketed range of $16 to $18, valuing the company at roughly $860.3 million. Eikon Therapeutics is developing a pipeline of experimental cancer treatments, leveraging technology from Nobel Prize winner Eric Betzig. Their lead drug candidate, EIK1001, is being tested in combination with Merck’s Keytruda for a form of skin cancer.
The IPO comes amid a resurgence of biotech IPOs in 2026, following a subdued 2025 where regulatory changes and funding cuts deterred drug developers from going public. Other recent and upcoming biotech IPOs include cancer drug developer Aktis Oncology, hair-restoration drug developer Veradermics, SpyGlass Pharma, and AgomAb Therapeutics. The renewed activity signals a potential thawing in investor sentiment towards the sector.
Despite the uptick in IPOs, analysts note that investors remain selective. Strong demand during roadshows and top-of-range pricing are no longer sufficient to guarantee a successful market debut. According to IPOX research associate Lukas Muehlbauer, Eikon’s primary asset is a drug that stimulates the patient’s immune system but has historically struggled with toxicity. Eikon aims to mitigate this risk through biomarker-guided dosing, balancing immune activation with tolerability to avoid uncontrolled inflammation.
