(Reuters) -Cash-strapped drug developer LB Pharmaceuticals said on Monday it was aiming for a valuation of up to $321.6 million in its New York initial public offering, potentially setting up the first sizable U.S. biotech flotation in months.
WHY IT’S IMPORTANT
Biotech listings — historically a key driver of U.S. healthcare listings — have slumped this year amid regulatory uncertainty, sidelining many would-be issuers.
Weight-loss drug developer Aardvark Therapeutics was the last notable biotech to raise more than $50 million in 2025; its shares have nearly halved since their February debut.
Aurion Biotech and Odyssey Therapeutics have both scrapped planned New York listings earlier this year.
CONTEXT
Founded in 2015, LB Pharmaceuticals is developing therapies that target schizophrenia, bipolar depression, and other neuropsychiatric diseases.
The biotech’s lead experimental candidate, LB-102, an oral drug in late-stage development, aimed at treating acute schizophrenia — a sudden and intense onset of psychotic symptoms.
LB Pharmaceuticals plans to start a six‑week late‑stage trial of LB‑102 in patients with acute schizophrenia in the first quarter of 2026.
BY THE NUMBERS
The New York-based firm is seeking up to $266.7 million by offering 16.7 million shares priced between $14 and $16 apiece.
It has raised more than $120 million from investors, including venture capital firms Deep Track Capital, Pontifax, TCG Crossover Fund, and Vida Ventures.
The company had $14.2 million cash in hand as of June 30.
WHAT’S NEXT
LB Pharmaceuticals will list on the Nasdaq under the symbol “LBRX.” Leerink Partners, Piper Sandler, and Stifel are the lead underwriters for the offering.
The company plans to use proceeds to advance clinical development of LB‑102 for acute schizophrenia and bipolar depression and for general corporate purposes.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Tasim Zahid)
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