LB Pharma targets IPO lifeline to fund schizophrenia drug trial

LB Pharmaceuticals has filed for an IPO to bankroll a phase 3 trial of its schizophrenia drug, despite recent layoffs, including the CFO and CSO, and just $14 million in cash vs a $114 million deficit as of June 30th.

Why it matters: The IPO could be a crucial lifeline for the CNS biotech to advance LB-102, a potentially more tolerable version of an older antipsychotic, toward FDA approval in a market hungry for better treatments. According to the filing, LB Pharma plans to raise $100M.

Backstory: LB Pharma is repurposing amisulpride, a 1980s dopamine inhibitor once marketed by Sanofi, into a modified oral drug (LB-102) targeting fewer side effects. The company posted positive phase 2 results earlier this year, showing significant symptom improvement and minimal sedation.

Big picture: The biotech IPO market has been frozen over the last six months and recent tries have struggled, like Aardvark Therapeutics which is down 38% since its debut earlier this year. LB Pharma’s move is a test of investor appetite for CNS drugs and whether a strong data readout can thaw investor hesitation amid sector-wide belt tightening.