LB Pharmaceuticals, a cash-strapped drug developer, is targeting a valuation of up to 322 million USD (approximately 295 million EURO) in its upcoming New York initial public offering, which could become the first significant biotech listing in several months. The flotation comes at a time when the biotech sector has seen a marked slowdown, with heightened regulatory uncertainty and poor market sentiment discouraging new issuances.

This year, only a handful of biotechs have managed to raise capital through public listings. Aardvark Therapeutics, a weight-loss drug developer, was the last notable company to raise over 50 million USD in 2025, though its stock has since lost nearly half its value. Meanwhile, firms such as Aurion Biotech and Odyssey Therapeutics have postponed their New York IPO plans amid weak investor appetite.

Founded in 2015, LB Pharmaceuticals is focused on developing treatments for schizophrenia, bipolar depression and other neuropsychiatric disorders. Its lead candidate, LB-102, is an oral drug currently in late-stage development for acute schizophrenia, a condition marked by sudden and intense psychotic symptoms. The company intends to begin a six-week late-stage clinical trial of LB-102 in patients with acute schizophrenia in the first quarter of 2026.

In the offering, LB Pharmaceuticals plans to raise up to 267 million USD (around 245 million EURO) by selling 16.7 million shares, priced between 14 and 16 USD each. The company has already secured more than 120 million USD in funding from investors such as Deep Track Capital, Pontifax, TCG Crossover Fund and Vida Ventures. As of 30 June, it reported having just 14.2 million USD in cash reserves.

LB Pharmaceuticals expects to list its shares on Nasdaq under the ticker symbol LBRX. The IPO will be underwritten by Leerink Partners, Piper Sandler and Stifel. Proceeds are earmarked to advance the clinical development of LB-102 for acute schizophrenia and bipolar depression, as well as for general corporate purposes.