LB Pharmaceuticals (LBRX.US), a biotechnology company focused on developing neuropsychiatric disorder treatments, announced its IPO pricing terms on Monday. The New York-based company plans to offer 16.7 million shares at a price range of $14 to $16 per share, targeting $250 million in proceeds. Based on the midpoint of the proposed pricing range, LB Pharmaceuticals would achieve a market valuation of $301.5 million. The offering will represent 83% of the company's outstanding basic shares post-listing. The company plans to accelerate its roadshow and expects to price this week.

LB Pharmaceuticals is expected to break the longest biotech IPO drought in over a decade, becoming the first significant biotech IPO since Aardvark Therapeutics (AARD.US) went public in February 2025. The sector has been plagued by poor performance, particularly in 2024, when biotech IPOs averaged a 38% decline from their offering prices, though performance has improved in recent months. The NASDAQ Biotechnology Index has gained 10.8% year-to-date and risen 28.0% from its April lows, roughly returning to pre-U.S. election levels.

LB Pharmaceuticals' lead candidate drug, LB-102, is an oral small molecule treatment ready to enter Phase III clinical trials for acute schizophrenia, a chronic condition characterized by hallucinations and delusions that affects approximately 1% of the U.S. population. In a Phase II clinical trial involving 359 patients, the drug met its primary endpoint at week 4. LB Pharmaceuticals expects to begin Phase III clinical trials in the first quarter of 2026.

Founded in 2015, LB Pharmaceuticals plans to list on NASDAQ under the ticker symbol "LBRX." Leerink Partners, Piper Sandler, and Stifel serve as joint underwriters for the transaction. The company is expected to price during the week of September 8, 2025.