Biotech firms City Therapeutics and Lycia Therapeutics pursue US IPOs

Biotechnology companies are pursuing initial public offerings (IPOs) to fund clinical development despite broader market uncertainty.

City Therapeutics, a Massachusetts-based firm specializing in RNA-based rare disease drugs, is targeting a valuation of up to $956.3 million in its US IPO. The company aims to raise approximately $184.7 million by offering 9.7 million shares. Proceeds are intended to fund clinical trials for its lead candidate, CITY-FXI, which targets thrombosis, and to advance its RNA interference platform. The company plans to trade on Nasdaq under the ticker ‘CTY’.

Lycia Therapeutics has filed a registration statement with the SEC for a proposed $100 million IPO. The capital is intended to advance its clinical-stage pipeline, specifically focusing on disease-modifying treatments for peanut and tree nut allergies. Lycia utilizes its Lysosomal Targeting Chimera (LYTAC) platform to develop therapies, such as its lead candidate LCA-0061, which aims to alter immune responses to allergens rather than merely managing symptoms.