Generate Biomedicines Inc., a biotechnology firm using artificial intelligence in drug development, is seeking to raise as much as $425 millon in an initial public offering, as listing activity in the sector picks up sharply.
The Somerville-based drug developer plans to market 25 million shares for $15 to $17 each, according to its filing Monday with the Securities and Exchange Commission. At the top of that range, Generate Biomedicines would have a market value of $2.2 billion based on the outstanding shares listed in its filing.
The company, which uses its proprietary AI system in drug engineering and development, is seeking to go public amid a jump in biotech and pharma IPO volume. First-time share sales for firms including Aktis Oncology Inc. and Veradermics Inc. since the start of the year have raised $1.4 billion, surpassing the $915 million raised in the same period in 2025, data compiled by Bloomberg show.
Generate is developing medicine for people with severe asthma and chronic obstructive pulmonary disease (COPD), the filing shows. The company expects late-stage trials for severe asthma to be fully enrolled later next year or in the first half of 2028. It expects early-stage data from a COPD study this year, the filing shows.
The firm raised $273 million in a Series C financing in 2023 which attracted investors including Amgen Inc., Nvidia Corp.’s venture capital arm, MAPS Capital (Mirae Asset Group), and Pictet Alternative Advisors. It has also collected $110 million in payments from collaboration agreements with Novartis AG and Amgen.
Generate had a net loss of $223 million last year, higher than the net loss of $181 million it reported in 2024, according to its filing.
Board chair Noubar Afeyan, who co-founded Moderna Inc., controls 57 percent of Generate’s shares through Flagship Pioneering, an investment firm that creates and backs biotech companies. Generate was founded by Flagship Pioneering in 2018. Chief executive Michael Nally holds 6.4 percent of Generate’s shares, according to the filing.
Generate’s IPO is being led by Goldman Sachs Group Inc. and Morgan Stanley. The company expects its shares to trade on the Nasdaq Stock Market under the symbol GENB.
With assistance from Bailey Lipschultz.