Eikon, a prominent startup founded by former Merck executives, is pursuing a public offering

Eikon Therapeutics Plans Public Offering

Eikon Therapeutics, a prominent biotechnology company that has secured over $1 billion in private investments since its inception in 2019, has announced intentions to launch an initial public offering (IPO).

• The company is led by a team of former Merck & Co. leaders, including Roger Perlmutter, previously head of research, and former chief medical officer Roy Baynes. Eikon is focused on developing treatments for cancer and neurological disorders. Currently, four of its drug candidates are undergoing clinical trials. The most advanced, EIK1001, is being evaluated in a Phase 2/3 study for advanced melanoma and a mid-stage trial for lung cancer. Interim results are anticipated later this year, as detailed in the company's IPO documentation.
• Eikon was established around a Nobel Prize-winning technology that enables researchers to observe protein movement within cells. However, the company has expanded its pipeline primarily through strategic acquisitions. EIK1001, which targets two toll-like receptors, was licensed from Seven and Eight Biopharmaceuticals. Additionally, a partnership with Impact Therapeutics provided Eikon with two PARP inhibitors, a well-known class of cancer drugs.

Trends in Biotech IPOs

The biotech IPO market has experienced a prolonged slowdown. After a surge in 2021 that saw over 100 drug companies go public, subsequent years have been marked by reduced activity as companies remained private longer due to a more selective funding environment. In 2025, only 11 biotech firms raised a combined $1.6 billion through IPOs, marking the lowest figures for the sector since at least 2018, according to BioPharma Dive.

However, some experts anticipate a shift in 2026. Following a sluggish start, the biotech sector rebounded in 2025, driven by increased deal activity and easing concerns over drug pricing and tariffs. Many companies that reported positive clinical outcomes saw their valuations rise, and venture capital investment soared. Notably, most biotech firms that went public in 2025 ended the year with stock prices above their IPO levels.

Analysts at RBC Capital Markets recently suggested that these developments could signal a reopening of the IPO market in 2026.

The first IPO of the year, by radiopharmaceutical company Aktis Oncology, was among the largest since early 2024. Eikon’s approach stands out, relying on a novel discovery platform and the expertise of its experienced leadership to identify and acquire promising drug candidates, as described in its IPO filing.

Pipeline Highlights and Future Prospects

Eikon has advanced three acquired assets—EIK1001, EIK1003, and EIK1004—into later-stage development. The company asserts that EIK1001, unlike previous drugs targeting toll-like receptors, can be administered systemically rather than injected directly into tumors, potentially leading to a more robust immune response.

The two PARP inhibitors, EIK1003 and EIK1004, are designed to be more selective than existing options such as Lynparza from AstraZeneca and Merck. This selectivity may help reduce blood-related side effects like anemia, which often lead patients to discontinue treatment. Eikon also believes these drugs could be effective in combination with chemotherapy, a challenge for other PARP inhibitors. Dose escalation studies for both are expected to conclude later this year.

Looking ahead, Eikon is developing additional cancer therapies discovered in-house. One targets “MSI high” tumors, characterized by numerous DNA mutations, while another is being developed as a next-generation androgen receptor antagonist for hormone-sensitive cancers like prostate cancer.

Both of these new candidates are either about to begin or have just started clinical trials.