LB Pharmaceuticals raises $285 million in US IPO

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(Reuters) -LB Pharmaceuticals raised $285 million in its U.S. initial public offering, the biotech firm said on Wednesday, marking the first sizable biotech IPO since February.

The New York-based firm sold 19 million shares at $15 each, within its marketed range of $14 to $16 apiece. The IPO valued LB at $301.5 million.

Companies ranging from crypto to consumer are poised to list their shares on U.S. exchanges this week as the U.S. IPO market makes a resurgent comeback, with investors shrugging off tariff concerns that scuttled all dealmaking in April.

LB’s debut would mark a rare listing by a biotech in an IPO market dominated by high-growth, tech-focused companies. 

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.

Biotech firms are widely considered long-term investment plays, as research and development, clinical trials and regulatory approvals required to commercialize a drug candidate can take years and millions of dollars in capital. 

LB is well aware of the challenge. Company filings show that its $14.2 million cash balance, as of June 30, will not be sufficient to meet operating and capital requirements.

The biotech’s 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.

LB Pharmaceuticals will begin trading on the Nasdaq on Thursday under the “LBRX” ticker symbol. 

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

(Reporting by Ateev Bhandari and Nilutpal Timsina in Bengaluru; Editing by Alan Barona)