- Lycia Therapeutics, a biotechnology firm focused on treatments for allergies and autoimmune diseases, raised $317.5 million in an upsized US initial public offering. The drug developer sold 17.64 million shares at $18 each, the top of its marketed range.
- Lycia had marketed 14.7 million shares at $16 to $18 each, an earlier filing showed. By our calculation, the final deal was about 20% larger than marketed by share count.
- At the IPO price, Lycia has a market value of $990.6 million based on the outstanding shares listed in its filing. The shares are expected to begin trading on Friday on the Nasdaq Global Select Market under the symbol LYCA.
- Founded in 2019 on the work of Nobel Prize winner Carolyn Bertozzi, Lycia plans to use the proceeds to develop three early-stage experimental drugs. They target food allergies and Graves’ disease.
What Happened?
Lycia priced its IPO at the top of its range and increased the number of shares sold, according to a statement on Thursday, Bloomberg reported. The San Francisco-based company had a net loss of $36.5 million for 2025 and a net loss of $19.2 million for the six months ended June 30, according to its filing. Lycia has raised nearly $266.6 million from life sciences investors since its inception. The offering is being led by Jefferies, TD Cowen, Evercore ISI and Guggenheim Securities.
Why It Matters?
An upsized deal priced at the top of the range shows demand for biotech listings even as the broader market is selling off on AI concerns. Lycia’s drugs are all early-stage, so investors are paying for the science and its Nobel-linked origins rather than near-term revenue. The IPO proceeds exceed the nearly $266.6 million Lycia had raised privately since its founding, giving it substantially more capital to fund development. Strong pricing could encourage other biotech companies considering US listings.
What’s Next?
The first test is Friday’s Nasdaq debut and whether the shares trade above the $18 offer price. Versant Ventures is expected to hold a 14% stake after the IPO, followed by Venrock Healthcare Capital Partners with 9.2% and Redmile Biopharma Investments with 8%. Other backers with smaller stakes include RTW Investments, Janus Henderson and Blue Owl Healthcare Opportunities. Over time, clinical progress on its three experimental drugs will determine whether the $990.6 million valuation holds.
Affected Tickers and Coins: LYCA, JEF, XBI
Source: Bloomberg
