TRex Bio (TRXB.US), a biotechnology company focused on developing drugs for autoimmune and inflammatory diseases, announced the terms of its initial public offering (IPO) on Monday.

The company plans to offer 8.3 million shares at a price of $14 to $16 per share, aiming to raise $125 million. Eli Lilly (LLY.US) intends to subscribe to $13 million worth of shares in this offering, representing 10% of the total transaction.

Based on the midpoint of the offering price range, TRex Bio's fully diluted market capitalization would reach $453 million.

TRex Bio is a clinical-stage biopharmaceutical company dedicated to developing drugs that enhance the function of regulatory T cells (Treg) in inflamed human tissues, with the goal of restoring immune balance and repairing barrier damage rather than broadly suppressing the immune system.

Its Deep Biology platform is capable of mapping Treg function across human skin, gut, and lung tissues to identify targets, which are then validated through proprietary in vitro Treg models and high-throughput functional assays.

Its lead candidate, TRB-061, is a TNFR2 agonist currently in a Phase 1b clinical trial for the treatment of moderate-to-severe atopic dermatitis, with preliminary data expected in mid-2027. Another wholly-owned candidate, TRB-071, targets CD30 for the treatment of inflammatory bowel disease and is expected to enter Phase 1 clinical trials in the first half of 2027.

Eli Lilly is both an investor and a discovery partner, and is currently advancing a third candidate discovered on the platform into a Phase 2a clinical trial for the treatment of lupus.

The South San Francisco, California-based company was founded in 2018 and plans to list on the Nasdaq under the ticker symbol "TRXB." JPMorgan, Evercore ISI, Cantor Fitzgerald, Stifel, and Wedbush Securities are serving as joint book-running managers for the transaction.