Flagship-Backed Generate Falls 21% After $400 Million US IPO (2)

Generate Biomedicines Inc. shares slumped 21% in the company’s trading debut after it raised $400 million in an initial public offering.

Shares of the Somerville, Massachusetts-based drug developer finished at $12.65 apiece Friday, versus an IPO price of $16. The offering of 25 million shares by Generate was marketed in a range of $15 to $17 each.

The trading gives Generate a market value of $1.6 billion based on the outstanding shares listed in its filings.

Biotech and pharmaceutical companies’ US IPOs this year including Generate have raised $1.8 billion, nearly double the $915 million seen in the same ...