Lycia Therapeutics Files for IPO to Fund LYTAC IgE and Graves'
The clinical-stage biotech is seeking public capital to advance LYTAC degraders aimed at IgE and Graves' disease.
Lycia Therapeutics, Inc. filed a prospectus for a proposed common-stock offering to raise capital for a clinical-stage pipeline built on its proprietary LYTAC (Lysosomal Targeting Chimera) platform, which the company says is designed to degrade disease-causing extracellular proteins in autoimmune, inflammatory and allergic diseases.
The company said it is advancing an IgE portfolio of cataLYTAC degraders intended to eliminate IgE for allergic diseases, including food allergy, and a Graves’ disease program aimed at degrading thyroid-stimulating hormone receptor autoantibodies. It said it is conducting Phase 1 trials of two of those candidates and that preliminary data from a first cohort of healthy atopic participants on one IgE program showed rapid, deep and sustained reduction in total and free IgE. Lycia said it believes that initial data support a differentiated profile from IgE blockers and provide early human proof-of-mechanism for the platform. A second IgE program is in IND-enabling activities, with a Phase 1 start intended after regulatory clearance.
The company said it has a limited operating history, has not completed any clinical trials, has no approved products and has never generated revenue from therapeutic candidates. It said it has funded operations primarily with convertible preferred-stock sales and common-stock and option exercises, and that it may need to shift from a research-and-development focus to supporting commercial activities if programs advance.
Lycia said the principal purposes of the offering are to increase financial flexibility, obtain additional capital to support operations, create a public market for its common stock and facilitate access to public equity markets. It said it currently intends to use net proceeds, together with existing cash, cash equivalents and marketable securities, to advance the clinical development of its three named programs, with the remainder for the research pipeline, other research and development, working capital and general corporate purposes. It said it believes those resources will fund projected operating expenses and capital expenditures through a period it left open in the prospectus, and that it may also use some proceeds to in-license, acquire or invest in complementary businesses, products or technologies, though it said it has no such commitments.