LB Pharmaceuticals Raises $285M in Nasdaq IPO, Shares Jump 27%

LB Pharmaceuticals successfully raised $285 million in its upsized initial public offering on the Nasdaq, marking a significant revival in the 2025 biotech IPO market after a drought of over six months. The New York-based company focuses on neuropsychiatric drug development, with its lead candidate LB-102, an oral treatment for schizophrenia, showing promising phase II trial results and plans to initiate a phase III study in 2026. LB's shares opened at $19, well above the $15 IPO price, and rose between 15% to 27% on the first day of trading, reflecting strong investor confidence. The proceeds from the IPO will largely fund LB-102's late-stage clinical trials for schizophrenia and bipolar disorder. This successful public debut is seen as a positive sign for biotech firms seeking to enter the public markets amid increased IPO activity in other sectors like fintech and cryptocurrency. Underwriters for the offering included Leerink Partners, Piper Sandler, and Stifel.