LB Pharma's initial public offering (IPO) in 2025 became one of the year's most notable, despite challenging market conditions. The company, led by CEO Heather Turner, decided to raise capital shortly after announcing positive Phase 2 results for its schizophrenia treatment, LB-102.
“We then undertook the process to raise capital at probably the worst possible time that you could possibly decide to need to raise $350 million,” Turner told BioSpace during the J.P. Morgan Healthcare Conference in January. “Of course, the bottom fell out of the capital markets.”
The broader IPO environment had been volatile. After a surge in listings following the pandemic peak in 2021—many without supporting clinical data—investor interest declined sharply, resulting in fewer IPOs over subsequent years. Venture capital funding also tightened significantly in 2025, making it more difficult for companies like LB Pharma to secure necessary funds.
Turner brought prior experience from Carmot Therapeutics, where she managed a dual-track IPO and merger-and-acquisition strategy that ended with Roche acquiring Carmot for $3.1 billion in December 2023.
After releasing their clinical trial data in January 2025, LB Pharma's leadership noticed a slight opening in the IPO market window that had remained closed for seven months. Regulatory discussions were progressing positively; LB-102’s Phase 2 trial was designed to be registrational and could potentially support a regulatory submission when paired with one additional late-stage study.
“We talked to the bank and luckily, the bank didn’t throw up on the idea,” Turner said. “That gave me quite a bit of confidence that we might have some partnerships that would really try to get it done.”
Despite ongoing challenges and uncertainties leading up to the IPO, investor interest grew as management presented their case during roadshows. Rather than setting an upfront valuation target, LB Pharma allowed investors to determine pricing. The stock debuted at $15 per share and raised $285 million. According to PitchBook, LB Pharma is now valued at $617 million. Since its September 11 debut, shares have risen nearly 40%, reaching $23.70 as of Friday morning.
Currently, LB Pharma continues development activities for LB-102. The company is running a Phase 3 trial for schizophrenia and has started a Phase 2 study evaluating its use in bipolar depression. Additional research is planned into using LB-102 as an adjunctive therapy for major depressive disorder, Alzheimer’s disease psychosis, and negative symptoms of schizophrenia.
Turner noted that clear communication with investors was essential given that no further major clinical milestones are expected soon; topline results from the Phase 3 schizophrenia study are anticipated in the second half of 2027.
“I think the investors that came into the stock understood that it’s going to be a while,” Turner said. “You’re going to have to put your seat belts on and wait it out.”
For ongoing updates on biopharma IPO activity this year and cautious optimism among analysts about an industry rebound, BioSpace provides regular coverage: https://www.biospace.com/article/generate-s-ipo-could-reach-425m-largest-biopharma-raise-yet/.
