Neuro drug developer LB Pharma seeks $300M+ valuation in U.S. IPO

LB Pharmaceuticals (LBRX), a drug developer focused on neuropsychiatric diseases has announced terms for its initial public offering on Nasdaq seeking a valuation of more than $300M according to a regulatory filing.

The New York-based biopharma plans to offer roughly 16.7M shares of its common stock at a price of $14.00 - $16.00 per share to raise more than $250M in gross proceeds. At the midpoint of the proposed pricing range, LB Pharma will be valued at $301.5M.

The company has granted a 30-day option for underwriters to purchase up to 2.5M additional shares at the IPO price, which will increase its total common stock outstanding after the offering to about 22.6M from approximately 20.1M.

LB Pharma (LBRX) projects net proceeds from the offering to reach about $228.5M (or ~$263.4M if the option for additional shares is exercised in full), which it intends to use for general corporate purposes and to further advance its lead asset, LB-102, targeted at conditions such as schizophrenia.

The IPO, expected to price this week, marks the first major biotech to raise more than $50M in its trading debut after weight loss drug developer Aardvark Therapeutics added about $94M from its initial public offering in February.