Lycia seeks $228 million IPO to advance experimental food-allergy drugs

Lycia Therapeutics is seeking about $228 million in net proceeds from a U.S. IPO. It plans to offer 14.7 million shares at $16–$18 each; proceeds could rise to about $263 million if underwriters exercise their option.

The funding would support clinical development of LCA-0061, Lycia’s experimental treatment for food allergy and other allergic diseases, and a related candidate, LCA-0062. The company estimates it will need about $80 million to take LCA-0061 through Phase 2 and another $70 million for LCA-0062.

LCA-0061 is designed to reduce IgE by directing it for lysosomal degradation. Lycia argues this could differ from Xolair, which blocks IgE but does not remove it, and says Xolair’s dosing and use in people with high IgE can be limitations.

Early Phase 1 results reported by Lycia showed rapid, deep and sustained reductions in total and free IgE, with no safety signals or dose-limiting toxicities observed so far. These are preliminary findings—not proof that the drug prevents allergic reactions or is more effective than Xolair.

The candidates remain in early clinical development, so whether the approach will benefit patients—and how it compares with established treatments—will depend on further trial results.