LB Pharmaceuticals Aims for $228M IPO to Fund Late-Stage Schizophrenia Study

LB Pharmaceuticals, a CNS-focused biotech company, has announced plans for an initial public offering (IPO) targeting $228.5 million in funding. The move comes as a potential breakthrough in the stagnant biotech IPO market, which has seen no activity since February.

IPO Details and Financial Strategy

The company intends to offer 16.7 million shares at an assumed price of $15 per share, potentially raising up to $263.4 million if all options are exercised. This ambitious fundraising effort is crucial for LB Pharmaceuticals, which reported only $14 million in cash reserves as of June 30, with an accumulated deficit of $114 million.

The majority of the IPO proceeds will be allocated to advancing the company's lead candidate, LB-102, an oral schizophrenia treatment. Specifically, $133 million is earmarked for a phase 3 study in schizophrenia, while $25 million will support a phase 2 trial in bipolar disorder. The remaining funds will be used for general corporate purposes.

LB Pharmaceuticals estimates that the IPO proceeds, combined with existing cash, should fund operations through the first quarter of 2028. The company plans to list on the Nasdaq under the symbol "LBRX."

LB-102: A Modified Amisulpride for Schizophrenia Treatment

At the heart of LB Pharmaceuticals' strategy is LB-102, a modified version of amisulpride, a dopamine inhibitor originally developed in the 1980s and marketed by Sanofi as Solian outside the U.S. The company's focus on this asset stems from promising phase 2 results announced in January, which showed statistically significant changes on a symptom scale after four weeks of treatment.

LB Pharmaceuticals aims to first secure FDA approval for LB-102 in the U.S. schizophrenia market before expanding to other disorders such as bipolar depression. The company also plans to develop alternative formulations to extend the product's life cycle and reach.

Company Leadership and Recent Developments

LB Pharmaceuticals is now operating under new leadership, with Heather Turner, former chief at Roche-acquired Carmot Therapeutics, serving as CEO. The company has previously received funding from notable investors including Deep Track Capital, TCG Crossover, Vida Ventures, and Pontifax.

In an effort to extend its cash runway, LB Pharmaceuticals underwent a round of layoffs in May, which included the departure of its chief financial officer and chief scientific officer. This strategic move, coupled with the ambitious IPO plans, underscores the company's determination to advance its clinical programs despite the challenging market conditions.