Moderna, Bayer-backed Metagenome stock falls 32% on Nasdaq debut

Feb 9 (Reuters) – Shares of genetic drug company Metagenomic Technologies, backed by Bayer Healthcare and Moderna, fell 32% on the Nasdaq on Friday.

The stock opened for trading at $10.25, compared to the IPO price of $15 per share.

The lackluster debut, which gives Metagenome a $384 million valuation, underscores the unpredictability faced by young startups seeking a stock listing.

The company, which is developing treatments for genetic diseases such as hemophilia A, has not yet made a profit. Its revenue is generated from three collaboration agreements, including one with Moderna, and not from product sales.

Over the past two years, IPO investors have preferred to back profitable companies over startups seeking growth at all costs as the Federal Reserve has kept borrowing costs at record-high levels.

Despite the growing stakes of a soft landing this year, the recovery in the IPO market has been uneven so far.

Among recently listed healthcare and pharmaceutical-related firms, CG Oncology and Kyverna Therapeutics have been well received, while BrightSpring Health Services has traded lower.

Metagenome priced its shares Thursday below the $15 to $17 range it had marketed.

Last year, the company had raised $275 million in a private funding round.

JPMorgan, Jefferies and TD Cowen are among the underwriters for the IPO.

(Reporting by Niket Nishant and Mehnaz Yasmin in Bengaluru; Editing by Tasim Zahid)

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