The biopharmaceutical company entered into a securities purchase agreement to sell 3.3 million shares of common stock and pre-funded warrants for an additional 1.4 million shares. Priced at $21.17 per share, the offering triggered a sharp market reaction that pushed the stock to a session peak of $24.95. According to the company, the deal is expected to close on or about Feb. 6.

Clinical Pipeline and Strategic Growth

Management intends to deploy the net proceeds primarily to fund a Phase 2 trial for LB-102, which is being developed as an adjunctive treatment for major depressive disorder. The remaining capital will support general corporate operations and working capital requirements. The financing saw participation from a diverse group of specialized healthcare investors, with Leerink Partners, Piper Sandler, and Stifel serving as placement agents.

Key institutional participants in the round included:

• Balyasny Asset Management L.P., Caligan Partners, and Commodore Capital
• Deep Track Capital, Nantahala Capital, and Pivotal bioVenture Partners
• Spruce Street Capital, TCGX, and Trails Edge Capital Partners

This funding milestone allows the company to accelerate its clinical roadmap for LB-102. By securing long-term backing from high-profile funds, the company has strengthened its balance sheet ahead of critical data readouts in the competitive psychiatric therapeutics space.