aibioTRex Bio prices IPO of 8,333,334 shares at $14.00 each
Tickers TRXB
TRex Bio priced 8,333,334 shares at $14.00 each, for $116,666,676 before underwriting fees. Eli Lilly, which paid the company a $55.0 million upfront in 2023, has indicated interest in buying shares, but the indication is not binding.
Key facts
- Company
- TRex Bio, Inc. (NASDAQ: TRXB)
- News type
- Financings
- Primary source
- TRex Bio, Inc. 424B4 (2026-10-09)
The offering
TRex Bio, Inc. (Nasdaq: TRXB) priced its initial public offering at $14.00 a share, under a prospectus dated October 8, 2026. The company is selling 8,333,334 shares. The total offering is $116,666,676. Underwriting discounts and commissions are $0.98 a share, or $8,166,667, which leaves $108,500,009 before expenses. The company estimates net proceeds of about $103.5 million, or about $119.8 million if the underwriters exercise their option in full. That option covers 1,250,000 more shares for 30 days. Delivery was expected on or about October 13, 2026.
Shares were approved for listing on The Nasdaq Global Select Market. The prospectus says the company completed a 1-for-3.8649 reverse stock split on October 2, 2026, and all share figures in the final document reflect it.
Lilly's indication
Eli Lilly and Company has indicated an interest in buying shares at the IPO price. Its total stake, including shares it already owns, would not exceed 19.9% of the shares outstanding after the offering. The prospectus says the indication is not a binding agreement, and Lilly may buy more, fewer or no shares.
Lilly has a prior relationship with TRex. In 2023 the two entered a research collaboration and license agreement, under which Lilly paid a one-time upfront of $55.0 million. The company recognized total collaboration revenue of $41.9 million that year. Its chief executive, M. Johnston Erwin, Jr., spent 36 years at Eli Lilly and Company before joining TRexBio.
Share count after the deal
The company will have 27,445,682 shares outstanding after the offering, or 28,695,682 if the option is exercised in full. Those figures count 19,112,348 shares outstanding as of June 30, 2026, after 17,742,217 shares of redeemable preferred stock convert into common stock on completion. Options for 2,980,123 shares were outstanding at that date, with a weighted-average exercise price of $1.22.
The prospectus's dilution table puts existing stockholders at 70% of the shares after the offering, at a weighted average price of $8.42 per share, and new investors at 30%, at $14.00.
Losses and cash
TRex reported a net loss of $3.1 million for 2024 and $34.8 million for 2025. Net cash used in operating activities was $25.6 million in 2024 and $41.4 million in 2025. The company says it has had net losses and negative operating cash flow in every year since its founding except 2023, when the Lilly upfront produced net income.
At December 31, 2025, cash, cash equivalents and marketable securities totaled $67.7 million, and the accumulated deficit was $94.3 million. In January 2026 the company sold 16,182,795 shares of Series B preferred stock in an extension of its Series B financing, for about $50.0 million. The company says its year-end cash plus those proceeds will fund operations for at least twelve months from the date the financial statements were issued.
The pipeline and the use of proceeds
TRex calls itself a clinical-stage company focused on tissue regulatory T cell biology. Its lead candidate, TRB-061, is a TNFR2 agonist in a Phase 1a/b trial in healthy volunteers and in patients with moderate-to-severe atopic dermatitis. Topline data from the patient portion are expected in mid-2027. A second candidate, TRB-071, is aimed at inflammatory bowel disease. It is in IND-enabling studies and is expected to enter a Phase 1 trial in the first half of 2027, subject to regulatory allowance.
The company intends to use the net proceeds, with existing cash, to fund Phase 2 trials of TRB-061 in atopic dermatitis and alopecia areata through topline data, to start and complete a Phase 1 trial of TRB-071 in healthy volunteers, and for working capital. The prospectus does not give a split among those uses.
Underwriters
J.P. Morgan, Evercore ISI, Cantor, Stifel and Wedbush PacGrow are named on the cover as the underwriters. Their discounts and commissions apply the same way to any shares bought by Lilly. At the company's request, the underwriters have reserved up to 3% of the shares for a directed share program for directors, officers, employees and others, run by J.P. Morgan Securities LLC. Except for shares bought by directors and officers, those shares are not subject to the underwriters' lock-up agreements.