Lycia Therapeutics, a Phase 1 biotech developing protein degraders for food allergy and Graves' disease, raised $318 million by offering 17.6 million shares at $18, the high end of the $16 to $18 range. The company had originally planned to offer 14.7 million shares; the eventual deal size was 27% more than planned at the midpoint of the original terms. At the pricing, the company has a fully diluted market cap of $1.1 billion.
Lycia Therapeutics is developing therapeutics designed to degrade disease-causing extracellular proteins, with an initial focus on autoimmune, inflammatory, and allergic diseases, using its LYTAC (Lysosomal Targeting Chimera) platform, which is based on work by Nobel laureate Carolyn Bertozzi at Stanford University. Its lead candidate, LCA-0061, is designed to degrade IgE for the treatment of allergic diseases, including food allergy, and is in a Phase 1 trial; preliminary data from the first cohort of eight healthy atopic participants (two placebo) showed a mean maximum immunoglobulin E (IgE) reduction of 96% from baseline for those dosed. A second IgE candidate, LCA-0062, is in IND-enabling activities. The company is also conducting a Phase 1 trial of LCA-0321, which is designed to selectively degrade the autoantibodies that drive Graves' disease.
The South San Francisco, CA-based company will trade on the Nasdaq under the symbol LYCA. Jefferies, TD Securities, Evercore ISI, Guggenheim Securities, and LifeSci Capital acted as joint bookrunners on the deal.
