Longboard Raises $80 Million in IPO to Advance Rare Neurological Pipeline
March 12, 2021
Rare Daily Staff
Just one year after being launched by Arena Pharmaceuticals with $56 million to develop novel medicines for rare neurological diseases, Longboard Pharmaceuticals has gone public, raising $80 million in an initial public offering of 5 million shares of its common stock at $16 per share, the high end of its proposed range.
The shares will trade on the Nasdaq Global Market under the symbol LBPH. In addition, the company granted underwriters a 30-day option to purchase up to an additional 750,000 shares at the initial offering price, less underwriting discounts and commissions.
Longboard is focused on developing novel central nervous system-targeted assets discovered by Arena’s validated G protein-coupled receptor (GPCR) research engine. Proceeds from the financing will be used to support the development of LP352, an oral, centrally acting, 5-HT2c superagonist in phase 1 development for the potential treatment of DEEs such as Dravet syndrome and Lennox-Gastaut syndrome (LGS) and other epileptic disorders. LP352 is designed to modulate GABA inhibition and, as a result, suppress the hyperexcitability that is characteristic of seizures. LP352 has novel chemistry and attributes, and was designed to be more specific and selective for the 5-HT2c receptor subtype, giving it the potential to reduce seizures in DEE patients while overcoming the known or perceived safety limitations of available drugs in the 5-HT2 class.
The company’s preclinical programs include LP143, a centrally acting, full CB2 agonist in development for neurodegenerative diseases associated with neuroinflammation, including amyotrophic lateral sclerosis (ALS). CB2 agonism has been shown in preclinical studies to regulate neuroinflammatory processes, reducing the neuronal damage characteristic of degeneration. Through its selectivity for CB2 versus the cannabinoid type 1 receptor (CB1), LP143 was designed to minimize the risk of psychoactive adverse events associated with CB1 activation. In preclinical studies, LP143 has demonstrated 1,000-fold greater selectivity for CB2 over CB1, sustained activity over the duration of treatment, and favorable blood-brain-barrier penetration.
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