Lycia Therapeutics surges in debut following upsized $317.5M IPO

Lycia Therapeutics Inc (NASDAQ:LYCA) surged nearly 33% in its Nasdaq debut on Friday after the clinical-stage biotechnology firm expanded its initial public offering to raise $317.5 million. The strong initial performance reflects robust investor appetite for novel therapeutic platforms targeted at high-value immunology and allergy markets.

The South San Francisco-based company priced 17.64 million shares at $18.00 apiece, the top of its indicated range, after upsizing the offering from an earlier planned 14.7 million shares. Trading under the ticker symbol “LYCA,” the stock opened sharply higher at $28.55 before paring gains to trade at $23.89 by midday, giving the firm a market valuation of approximately $1.31 billion.

The substantial capital injection will primarily support the clinical advancement of Lycia’s proprietary LYTAC (Lysosomal Targeting Chimera) degradation platform. Founded on research by Nobel laureate Carolyn Bertozzi, the company’s cataLYTAC technology is engineered to enable the repeated catalytic elimination of disease-causing extracellular proteins.

Proceeds are slated to fund progress across its lead developmental assets, including LCA-0061, an IgE-targeting degrader aimed at food allergies, and LCA-0321, designed to selectively deplete pathogenic autoantibodies in Graves’ disease. Underwriters, led by joint book-runners Jefferies, TD Cowen, Evercore ISI, and Guggenheim Securities, hold a 30-day option to purchase up to an additional 2.646 million shares.

The offering is expected to close on Oct. 26, subject to customary closing conditions. Against a backdrop of selective biotech capital markets, Lycia’s upsized pricing and premium opening trade underscore strong institutional backing for targeted protein degradation technologies.