TRex Bio IPO
Lilly-Backed Biotech TRex Bio Plans $125 Million Nasdaq IPO
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Key Points
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TRex Bio said IPO proceeds, together with existing resources, should fund operating and capital-spending needs into the second half of 2029; at the $15 midpoint, it expected net proceeds of about $111.3 million, rising to roughly $128.7 million if underwriters exercise the overallotment option.
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Eli Lilly already owns about 23.9% of TRex Bio, and its planned IPO purchase would leave it with no more than a 19.9% stake after the offering, according to the company.
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TRex Bio’s Deep Biology platform studies regulatory T-cell function in fresh human skin, gut and lung tissue, then uses a proprietary in-vitro Treg model and functional assays to validate potential drug targets.
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Lilly is also advancing a third drug candidate discovered through TRex Bio’s platform into a Phase 2a lupus trial.
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The company’s prospectus described TRB-061 as being tested in a Phase 1a/b trial involving both healthy participants and people with moderate-to-severe atopic dermatitis; the Phase 1b portion began in April. The prospectus also cited an estimated 16 million U.S. adults and 225 million people worldwide living with atopic dermatitis.
TRex Bio, a South San Francisco biotech company backed by pharmaceutical giant Eli Lilly, plans to raise about $125 million in a Nasdaq IPO by selling 8.3 million shares priced at $14 to $16 each under the ticker TRXB, according to TechTimes. Lilly, which already owns roughly 24% of the company, has signaled it will buy shares in the offering, leaving it with no more than a 19.9% stake afterward, per Business Insider.
The company develops treatments using regulatory T cells — immune cells that restore balance and support tissue healing — to target autoimmune and inflammatory diseases like atopic dermatitis and inflammatory bowel disease. At the $15 midpoint price, TRex expects net proceeds of about $111.3 million, enough to fund operations into late 2029, according to Fierce Biotech.
Lead Drug Candidate Targets Severe Eczema
TRex's main drug, TRB-061, is currently in Phase 1b trials for atopic dermatitis, a chronic skin condition affecting 16 million U.S. adults and 225 million people worldwide. The Phase 1b portion of testing — which includes patients with moderate-to-severe eczema — began in April. Topline results are expected in mid-2027, according to TechTimes.
The company is also preparing a second candidate, TRB-071, to enter Phase 1 testing for inflammatory bowel disease in the first half of 2027. Meanwhile, Eli Lilly is advancing a third drug candidate discovered through TRex's platform into a Phase 2a trial for lupus, per Fierce Biotech.
Lilly's Strategic Investment and Stake
Eli Lilly's involvement extends beyond backing: the pharmaceutical company already owns about 23.9% of TRex Bio and plans to participate in the IPO. After the offering, Lilly's stake will shrink to no more than 19.9%, according to TechTimes. This structure lets Lilly maintain significant influence while allowing the biotech to raise capital from other investors.
Deep Biology Platform Validates Drug Targets
TRex Bio uses what it calls its Deep Biology platform to study how regulatory T cells function in fresh human tissue samples — skin, gut, and lung. The company then uses proprietary lab models and functional tests to identify and validate potential drug targets. This tissue-based approach gives TRex an edge in finding treatments that actually work in the real human body, per Business Insider.
IPO Proceeds Will Fund Operations Through 2029
At the $15 midpoint price, TRex expects net proceeds of roughly $111.3 million. If underwriters exercise their overallotment option — allowing them to sell up to 15% more shares — net proceeds could climb to about $128.7 million. Combined with existing cash, this funding is expected to cover operating costs and capital spending into the second half of 2029, according to Fierce Biotech.
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