Kardigan Inc. raised $400 million in an upsized initial public offering (IPO), surpassing its initial target of $373.3 million. The biotech company sold 25 million shares for $16 each, achieving the top end of its expected price range. This successful IPO brings the company's valuation to $1.4 billion.
The increased funds will be allocated to advancing Kardigan's pipeline of three late-stage cardiovascular drug candidates. These include danicamtiv for genetic dilated cardiomyopathy, ataciguat for calcific aortic valve stenosis, and tonlamarsen for blood pressure management in acute severe hypertension. The company plans to spend between $80 million and $90 million on danicamtiv's phase 2b/3 program, another $80 million to $90 million on ataciguat's phase 2b trial, and $50 million to $60 million on general research and development activities.
Kardigan's IPO follows a trend of strong investor interest in the biotech sector, especially for companies with advanced clinical programs and clear paths to commercialization. This offering comes shortly after other significant biotech IPOs, such as Parabilis's $670 million offering and Kailera's $625 million offering. Kardigan had previously secured a $300 million Series A funding round in January 2025 and an additional $254 million ten months later, illustrating ongoing investor confidence in its cardiovascular focus.
The Princeton, New Jersey-based company is expected to trade on the Nasdaq under the ticker symbol "KARD." J.P. Morgan, Jefferies, Leerink Partners, and TD Cowen are serving as the underwriters for the offering. This influx of capital is critical for Kardigan as its research and development expenses more than doubled to $45.1 million in the quarter ended March 31, compared to the previous year, driven by increased clinical development activities.
