Strong demand for LB Pharma in rare NASDAQ IPO: Public Equity Report

The first NASDAQ IPO by a biotech in several months turned out to be a well-received one, as neurology company LB Pharmaceuticals Inc. (NASDAQ:LBRX) finished the week up 12% from its offering price, at $16.80. The company raised $285 million through the sale of 19 million shares — 14% more than it had targeted — at the $15 midpoint of its proposed range, for a valuation of about $336 million.

LB’s listing was the first to raise at least $25 million by a pure-play biopharma since the offering by Aardvark Therapeutics Inc. (NASDAQ:AARD) in February. Unsurprisingly, the company had a fairly de-risked asset: LB-102, its methylated formulation of DRD2, DRD3 and serotonin 5-HT7 antagonist amisulpride for schizophrenia. Results from a Phase II study showed efficacy signals, including effects on both positive and negative symptoms, as well as a tolerability profile the company described as “potentially class-leading” in its prospectus...