Nuclera, a UK Biotech Firm, Seeks a New York IPO Instead of a UK One

Nuclera, a burgeoning life sciences startup, is considering a public listing in New York within the next five years as it nears the prestigious unicorn status. Originating from Cambridge University, Nuclera specialises in expediting the drug discovery process.

The company focuses on quickly identifying the necessary proteins for developing new medications and vaccines, potentially shortening a process that traditionally takes months or years to just a few days.

Recently, Jonathan Milner, a prominent investor in the life sciences sector and ex-CEO of biotech firm Abcam, recognised Nuclera's potential to become Cambridge's next unicorn – a startup valued at over $1 billion. Nuclera would follow in the footsteps of renowned companies like Arm and Darktrace. Milner took on the role of non-executive chair on Nuclera’s board earlier this year.

Michael Chen, the founder and CEO of Nuclera, expressed to City A.M. the company's aspirations to reach unicorn status through an IPO or by being acquired by a larger corporation. “Our goal is to attain that unicorn status in the coming five years, and we believe we are on track to achieve this,” he said.

Chen outlined two paths for the company: an IPO or integration into a larger company's portfolio, with the latter offering enhanced operational capabilities and customer service. He emphasised the need to be flexible and consider all available options. Still, he hinted that Nuclera might prefer New York over London for its listing, following the example of chip giant Arm.

The preference for New York stems from the presence of seasoned biotech investors on the Nasdaq and the New York Stock Exchange, who deeply understand the biotech market. However, Chen did not rule out the possibility of the London Stock Exchange becoming an attractive option in the next few years.

Nuclera's primary base is in Cambridge, where it employs around 90 people and maintains a smaller office in Boston, USA.

London's public markets have recently experienced challenges, with a spate of privatisation deals led by private equity firms and lower valuations than global competitors. Chen acknowledged these difficulties in the UK tech landscape.  

Nuclera, having raised $83 million (£65.3 million) in funding, collaborates with Google Cloud’s AI program AlphaFold2 and Cambridge AI startup Deepmirror. Its key investors include RT partners, M&G Catalyst, Amadeus Capital Partners, Verve Ventures, and several angel investors.