Biotechnology company LB Pharmaceuticals (LBRX.US), focused on developing neuropsychiatric disorder treatments, announced Wednesday that it raised $285 million in its U.S. initial public offering (IPO), marking the largest biotech IPO since February. The New York-based company issued 19 million shares at $15 per share, pricing within the $14-$16 range. The IPO values LB Pharmaceuticals at $301.5 million.

As the U.S. IPO market recovers, companies ranging from cryptocurrency to consumer goods are expected to go public on American exchanges this week. In an IPO market dominated by high-growth, technology companies, LB Pharmaceuticals' listing signals that biotech IPOs are emerging from their winter freeze.

Weight-loss drug developer Aardvark Therapeutics (AARD.US) was the most recent notable biotech company to successfully raise over $50 million in 2025. However, its stock price has nearly halved since its February listing.

Biotech companies are typically viewed as long-term investments, as the research and development, clinical trials, and regulatory approvals needed to commercialize a drug candidate can take years and millions of dollars. LB Pharmaceuticals clearly recognizes this challenge. Company filings show that as of June 30, its $14.2 million cash balance is insufficient to meet operational and capital requirements.

LB Pharmaceuticals' lead drug candidate, LB-102, is an oral small molecule drug ready to enter Phase III clinical trials for treating acute schizophrenia. In Phase II clinical trials involving 359 patients, the drug achieved its primary endpoint at week 4. LB Pharmaceuticals expects to begin Phase III clinical trials in the first quarter of 2026.

LB Pharmaceuticals will begin trading Thursday on NASDAQ under the ticker symbol "LBRX." Leerink Partners, Piper Sandler, and Stifel serve as joint underwriters for the offering.