LB Pharma valued at $382 million as shares jump in New York debut

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By Pritam Biswas

(Reuters) – LB Pharmaceuticals’ shares rose 27% in their Nasdaq debut on Thursday, giving the biotech firm a valuation of $381.9 million and opening the door for companies looking to tap the public markets before 2026.

Shares of the New York-based company opened at $19 apiece, compared with its IPO price of $15. It had priced its offering within its marketed range to raise $285 million.

Activity in the U.S. IPO market has bumped up going into the fall season as investors shrugged off tariff concerns that jolted the market earlier in the year.

“Tariffs haven’t been a major sticking point, with the S&P 500 hitting all-time highs; a little early-September volatility is healthy, bringing valuations to more attractive levels for new investors,” said Jeff Zell, senior research analyst at IPO Boutique.

LB Pharmaceuticals makes a rare entry as a biotech firm into the IPO pipeline, which has been dominated by financial and technology firms.

Swedish fintech firm Klarna opened to a strong reception from investors on Wednesday, with its shares popping 30% at first trade. The Winklevoss twins’ cryptocurrency exchange, Gemini, is set to go public on Friday.

Weight-loss drug developer Aardvark Therapeutics was the last notable biotech firm to go public, raising more than $50 million in 2025. Its shares have nearly halved since their February debut.

LB Pharmaceuticals’ lead experimental candidate, LB-102, is an oral drug in late-stage development aimed at treating acute schizophrenia – a sudden and intense onset of psychotic symptoms.

It plans to start a six‑week late‑stage trial of LB‑102 in patients with acute schizophrenia in the first quarter of 2026.

Leerink Partners, Piper Sandler and Stifel were the lead underwriters for the offering.

(Reporting by Pritam Biswas in Bengaluru; Editing by Krishna Chandra Eluri and Shreya Biswas)