The IPO Buzz: Beta Bionics Prices Upsized Deal at $17 – High End; Stock Pops on NASDAQ

Insulin delivery device maker Beta Bionics (BBNX) increased its IPO’s size to 12.0 million shares – up from 10.0 million shares – and priced the IPO at $17.00 – the top of its range – to raise $204.0 million on Wednesday night, Jan. 29, 2025. At pricing, Beta Bionics had a market cap of $729.13 million. (This column, published early Thursday, was updated at midday with news on Beta Bionics’ debut on NASDAQ.)  Beta Bionics‘ stock surged to open at $22.00 – up $5.00 from its IPO price – at midday on Thursday, Jan. 30, on NASDAQ volume of about 1.1 million shares. BofA Securities, Piper Sandler, Leerink and Stifel served as the joint book-runners. Beta Bionics is a medical device maker targeting Type 1 diabetes (juvenile diabetes). The Irvine, California-based company has revenue – something that set it apart from most medical device companies and biotechs when they go public. Beta Bionics’ product, the iLet Bionic Pancreas (iLet), is the first insulin delivery device cleared by the FDA to use adaptive closed-loop algorithms to autonomously determine every insulin dose without requiring a user to count carbohydrate intake. The company said it believes that “this marks a significant advancement over other insulin delivery technologies” such as insulin pumps and multiple daily injections, according to the prospectus. Beta Bionics is focusing its initial commercialization efforts for the iLet on Type 1 diabetes. In May 2023, the FDA gave the company clearance to develop the device for Type 1 Diabetes (T1D) patients ages 6 and older. T1D is an autoimmune disorder that often develops during childhood or adolescence, but can occur at any age, and arises from a person’s immune system attacking and destroying the insulin-producing beta cells in the pancreas. About 1.8 million people in the United States are living with Type 1 Diabetes – and all require daily insulin replacement to manage their disease, according to the Centers for Disease Control and Prevention (CDC). (This fact is in the prospectus.) The iLet “is enabled by adaptive closed-loop algorithms that continuously learn each person’s unique and ever-changing insulin requirements and then autonomously delivers the correct insulin doses every five minutes throughout the day and night. Only the user’s body weight is required for device initialization and the autonomous determination of all insulin doses, unlike insulin pumps and hybrid closed-loop systems, which require a complex host of parameters to configure,” the prospectus said. The medical device company is not profitable, but it does have revenue. For the 12 months that ended Sept. 30, 2024, Beta Bionics reported a net loss of $55.4 million on revenue of $53.1 million. (For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on the IPOScoop.com  website.) Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board. To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message. Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions. Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.