Allergy and autoimmune biotech company Lycia Therapeutics (LYCA.US) IPO priced at $16-18 per share, aiming to raise $250 million.

Biotech company Lycia Therapeutics announced the terms of its initial public offering (IPO) on Tuesday. The South San Francisco, California-based company plans to raise $250 million by offering 14.7 million shares at a price range of $16 to $18 per share. At the midpoint of the proposed price range, Lycia Therapeutics would have a fully diluted market value of approximately $950 million. Lycia Therapeutics is focused on developing therapies designed to degrade disease-causing extracellular proteins, initially targeting autoimmune, inflammatory, and allergic diseases. Its technology platform, called LYTAC (lysosome-targeting chimera), is based on research conducted at Stanford University by Nobel laureate Carolyn Bertozzi. Its lead candidate, LCA-0061, is designed to degrade immunoglobulin E (IgE) for the treatment of allergic diseases including food allergies and is currently in Phase 1 clinical trials. Preliminary data from the first 8 healthy atopic subjects (2 of whom received placebo) showed that IgE levels in treated subjects decreased by up to 96% from baseline. A second IgE candidate, LCA-0062, is currently undergoing pre-IND filing preparations. In addition, the company is conducting a Phase 1 clinical trial of LCA-0321, which is designed to selectively degrade the autoantibodies that cause Graves' disease. Graves' disease is an autoimmune thyroid disease. Lycia Therapeutics was founded in 2019 and generated $4 million in revenue in the 12 months ended June 30, 2026. The company plans to list on Nasdaq under the ticker symbol LYCA. Jefferies, TD Securities, Evercore ISI, Guggenheim Securities, and LifeSci Capital are serving as joint book-running managers for the offering. Pricing is expected in the week of October 19.