LB Pharma reaches for IPO lifeline
LB Pharmaceuticals filed for a Nasdaq IPO that looks to break what has been a six-month pricing drought for biotech new issues.
Leerink Partners, Piper Sandler and Stifel are joint bookrunners on the all-primary offering.
The late-stage neurology specialist is poised to become the first US biotech IPO since Aardvark Therapeutics' disappointing US$94.2m debut in February.
Biotech IPOs have been hit or miss this year, with Aardvark (–43.5%) and Maze Therapeutics (–16.8%) trading below issue, while Sionna Therapeutics (+33.7%) and Metsera (+81.1%) provided solid aftermarket gains.
LB, which had only US$14m of cash at the end of June, does not have time to wait for better clarity about biotech IPO demand. The cash-strapped biotech’s ability to continue as a going concern is flagged as a risk in the IPO filing.
Looking past the balance sheet, LB’s drug shows promise as an oral treatment for acute schizophrenia and other neurological conditions.
Patients with acute schizophrenia who took one pill daily for six weeks in a Phase II trial experienced fewer psychotic episodes and unwanted side effects than those who received approved treatments.
LB thinks the same drug has broad potential as an antipsychotic for patients with bipolar depression, major depression and agitation in Alzheimer’s disease.
The FDA has already approved the Phase III trial design in acute schizophrenia. In addition to funding that trial, LB is spending some of the IPO proceeds on a Phase II trial for the same drug in patients with bipolar depression.
Both studies are expected to begin in Q1 next year.