City Therapeutics IPO: how the business makes money

City Therapeutics is testing medicines that silence disease-linked genes; it sells no product yet, so partners' fees and money from investors pay for the research.

• 01Biogen pays it for work on neurodegenerative disease, and Bausch + Lomb for work on one eye target. They provided all of its $6.4 million revenue in the six months to Jun 30, 2026.
• 02Research and development cost $46.3 million of the $57.5 million operating expenses in those six months, leaving an operating loss of $51.1 million.

New shares sold by the company

$230M · 12.78 million shares

Listed on

Nasdaq

Ticker

CTY

Lock-up on existing holders

180 days

Listing date (as stated)

Oct 16, 2026

• 01New shares: the company sold all of them, so the money goes to City Therapeutics after underwriting costs. There are no selling stockholders.
• 02The base deal was 11,111,111 shares, or $200.0 million at $18.00, per the 424B4 cover. The underwriters' 30-day option on 1,666,666 more was exercised in full, per Schedule 13D filed Oct 26, 2026 and Schedules 13G filed Oct 22 and Oct 26, 2026.
• 03With the option, gross money raised was about $230.0 million (Cityfort calculation from the 424B4 and Schedule 13D filed Oct 26, 2026). The 424B4 states net proceeds of about $209.4 million with the option, after underwriting discounts and about $4.5 million of expenses.
• 04The S-1/A filed Oct 9, 2026 gave an expected range of $17.00 to $19.00 and 9,722,222 shares. The final price was $18.00, and a Form S-1MEF filed Oct 15, 2026 added shares.
• 05Nasdaq's table shows the first trade on Oct 16, 2026: open $23.00, close $22.40. That is 27.8% and 24.4% above $18.00 (Cityfort calculation from the 424B4 and Nasdaq's table).
• 06Nasdaq's closing price on Nov 4, 2026 was $16.41, 8.8% below $18.00. On 53,387,834 shares that is a market value of about $876.1 million (Cityfort calculation from the Nov 4, 2026 closing price and the 424B4).
• 07At the IPO, preferred stock converted into 28,848,641 shares. The Biogen note converted into 2,133,788 shares at a 15% discount to the offering price, per the 424B4.

City Therapeutics, its officers and directors, and holders of substantially all its stock agreed not to sell or hedge for 180 days from the prospectus date of Oct 15, 2026, subject to exceptions. Goldman Sachs and Jefferies can consent to an earlier release.

Underwriters

4 named in the S-1 (lead: Goldman Sachs & Co. LLC, Jefferies LLC)

Controlled company

The 424B4 does not describe City Therapeutics as a controlled company under Nasdaq rules.

Lead underwriters

Goldman Sachs & Co. LLC, Jefferies LLC

Transfer agent

Computershare Trust Company, N.A.

Source: City Therapeutics, Inc. final prospectus (Form 424B4), dated Oct 15, 2026; Schedule 13D, ARCH Venture Fund XII and related persons, City Therapeutics; Schedule 13G, Viking Global Investors and related persons, City Therapeutics and 5 more

Learn: How to read an S-1: Anthropic's IPO registration statement · IPO lock-up agreements: what they are and when they end

• CITY-FXI: the ongoing Phase 1 trial and the start of a Phase 2 study in knee replacement patientsAbout $30.0 million, as stated in the 424B4.$30M
• CITY-RBP4: the Phase 1 trial and preparation for later-stage work in Stargardt disease and geographic atrophyAbout $20.0 million, as stated in the 424B4.$20M
• CITY-TFR2: a doctor-led trial in China and a Phase 1/2 trial, both in anemia with myelofibrosisAbout $40.0 million, as stated in the 424B4.$40M
• The City Platform: cityRNA programs (CITY-O02 and CITY-C02) and other candidates not yet tested in peopleAbout $70.0 million, as stated in the 424B4.$70M
• Working capital and other general corporate purposesThe 424B4 gives no figure: this is the remainder of the net proceeds.Amount not fixed

The company says in the same 424B4 that the plan may change and that the money, with existing cash, funds operations into late 2028. It says it will need more capital for later trials and any launch.

Only the shares the company sells raise money for it; money from shares sold by existing stockholders goes to them.

Learn: IPO lock-up agreements: what they are and when they end

• CITY-FXI (Phase 1)

  Aims at Factor XI, a blood-clotting protein, to prevent harmful clots in patients who often cannot use common blood thinners called DOACs. Six healthy adults got each dose. Factor XI fell on average 61% at 15 mg, 79% at 50 mg and, three weeks after dosing, 85% at 150 mg (data to Aug 14, 2026).

• CITY-RBP4 (Phase 1 application filed mid-2026)

  For Stargardt disease type 1, an inherited disease causing vision loss. The company says, citing third-party publications, that more than 30,000 people in the US are diagnosed and no therapy is approved. It said in its 424B4 (Oct 15, 2026) that it is also exploring geographic atrophy and expects to start a Phase 2 trial there in late 2027.

• CITY-TFR2 (preclinical: not yet tested in people)

  For anemia of chronic disease, starting with anemia in myelofibrosis. The company says, citing third-party publications, that anemia of chronic disease affects more than 5 million people in the US. It says in its 424B4 (Oct 15, 2026) that a doctor-led trial in China is expected to begin in late 2026.

• Discovery programs

  CITY-L04 aims at an undisclosed liver target. CITY-O02 and CITY-C02 use the company's cityRNA technology for the eye and the central nervous system. None has reached people.

• Partner programs

  Research for Bausch + Lomb on one eye target and for Biogen on neurodegenerative disease. These provided all the company's revenue so far.

• Biogen

  55%

  of revenue

  Deal of May 23, 2025 on neurodegenerative disease: $16.0 million upfront plus a $30.0 million convertible note. Further milestones could reach about $1.0 billion, with high-single to low-teens royalties, per the 424B4. A $4.0 million research milestone was achieved in the first half of 2026.

• Bausch + Lomb

  45%

  of revenue

  Deal of Jul 8, 2024 on one eye target: $5.0 million upfront plus a $10.0 million convertible note. Fees and milestones could reach $485.0 million, with mid-single to low-teens royalties, per the 424B4. None of these milestones or royalties was due at Jun 30, 2026.

1. 1Two partners provided $13.6 million of collaboration revenue in FY2025. Interest on cash added $4.2 million.
2. 2Research and development took $58.4 million, more than four times revenue.
3. 3General and administrative costs were $15.1 million. Revenue less these two costs was an operating loss of $59.9 million.
4. 4Interest expense of $2.3 million and other expense of $0.5 million came next.
5. 5Costs were $58.5 million more than revenue and interest income. That is the net loss, paid for from cash raised from investors.

• Investors' money

  The company raised about $238.8 million of equity capital from July 2023 to Jun 30, 2026, per the 424B4, then about $209.4 million net in the IPO, as stated with the option.

• Licensed technology

  An Ohio State Innovation Foundation license, signed Oct 30, 2023, gives exclusive rights behind cityRNAs. It costs up to $4.2 million in milestones per product, plus low-single-digit royalties and a share of sublicense income.

• Outside manufacturers

  City Therapeutics has no plants of its own. It relies on contract manufacturers, some in China, per the 424B4.

• Scientists and labs

  81 full-time employees at Sep 1, 2026, 71 of them in research and development. It leases about 51,726 square feet of offices and labs in Cambridge to September 2031.

• Alnylam

  Named in the 424B4 among companies developing siRNA medicines, the RNAi drug type. City Therapeutics' executive chair was its founding CEO for nearly 20 years.

• Arrowhead, Ionis, Silence

  Named in the 424B4 among companies developing siRNA medicines.

• Amgen, AstraZeneca, GSK, Lilly, Novo Nordisk

  Large drug makers named in the 424B4 among companies developing siRNA medicines.

• Bayer, Bristol-Myers Squibb, Johnson & Johnson, Novartis, Regeneron

  Named in the 424B4 as active on Factor XI, CITY-FXI's target, along with ADARx and CRISPR Therapeutics with Sirius.

• Alkeus, Belite Bio

  Named in the 424B4 as active in Stargardt disease, CITY-RBP4's target use.

• CITY-FXI

  Early

  Phase 1: Factor XI down 85% on average at 150 mg, three weeks after dosing, in six healthy adults (data to Aug 14, 2026)

  The company said in its 424B4 (Oct 15, 2026) that it expects more single-dose data in late 2026. It expects Phase 2 in knee replacement to start in mid-2027, and to seek a partner before Phase 3.

  Status: Early, too early to judge.

• CITY-RBP4

  Early

  Phase 1 application filed mid-2026; $6.3 million direct spending in the six months to Jun 30, 2026

  The company said in its 424B4 (Oct 15, 2026) that it expects the Phase 1 start in late 2026 and initial data in mid-2027.

  Status: Early, too early to judge.

• CITY-TFR2

  New

  Preclinical; $3.5 million direct spending in the six months to Jun 30, 2026

  The company said in its 424B4 (Oct 15, 2026) that it expects a doctor-led trial in China in late 2026, data in mid-2027, and a Phase 1/2 trial in early 2027.

  Status: New, recently announced.

• Partner deals

  Working

  Collaboration revenue: $13.6 million in FY2025, $2.8 million in FY2024

  The company said in its 424B4 (Oct 15, 2026) that it plans to largely finish its research so Bausch + Lomb can select a candidate by late 2026, and Biogen by late 2027. No development, commercial or sales milestones were due at Jun 30, 2026.

  Status: Working, on track against what the company said.

Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.

EBITDA here = operating income plus depreciation and amortization (from the cash flow statement). Fiscal years are the company's own (December 31). Net profit is the share belonging to the company's owners.

City Therapeutics says in its 424B4 that it is an emerging growth company, so the filing gives two audited years instead of three.

Learn: Stock-based compensation and dilution: pay that becomes shares

• Stockholders' deficit was $131.7 million at Jun 30, 2026 because $256.1 million of preferred stock sat outside equity. It converted at the IPO.
• The 424B4 says no convertible notes remain after the IPO; the Biogen note converted into shares.
• Cash excludes $2.5 million of restricted cash. Operating lease liabilities of $23.9 million are not counted as debt here.
• The 424B4 estimates about $141.9 million of cash and equivalents at Sep 30, 2026, before the IPO money. That figure is preliminary, unaudited and not reviewed by the auditor.
• Deferred revenue of $10.8 million at Jun 30, 2026 is partner money received for work not yet recognized as revenue.

Officers and directors (as a group), shares

11.1%

From the prospectus table of principal stockholders. Holdings fall after the IPO when new shares are sold; the prospectus also shows the holding after the offering.

• John Maraganore

  Co-founder and Executive Chair · since 2023

  Founding CEO of Alnylam for nearly 20 years. His retainer is $240,000 a year after the IPO, up from $200,000. He held 5.48% before the offering.

• Andrew Orth

  President, CEO and director · since 2024

  Previously Chief Commercial Officer of Krystal Biotech and a senior vice president at Alnylam.

• Keith Regnante

  Chief Financial Officer · since 2026

  Previously Chief Financial Officer of Keros Therapeutics.

• Baisong Mei

  Chief Medical Officer · since 2025

  Previously Chief Medical Officer at Editas Medicine.

• Tracy Zimmermann

  Chief Scientific Officer · since 2024

  Spent 15 years at Alnylam.

• Sebastian Trousil

  Co-founder and Chief Operating Officer · since 2023

• Barry Greene

  Director · since 2024

  Former CEO of Sage Therapeutics.

• Robert Nelsen

  Director · since 2023

  Co-founder of ARCH Venture Partners, on ARCH's investment committee. He disclaims beneficial ownership of ARCH's shares, per the 424B4.

• Sara Nochur

  Director · since 2025

  Former Chief Regulatory Officer of Alnylam.

• Ron Philip

  Director · since 2024

  Former CEO of Orbital Therapeutics.

Auditor

PricewaterhouseCoopers LLP

Auditor changes

None in the period covered

Audit qualifications

None reported

Related-party dealings

The 424B4 lists deals with insiders and holders. An Alexandria Real Estate Equities subsidiary is both landlord and linked to an investor; rent and facility fees paid were $6.2 million in FY2025. John Maraganore has a paid chair retainer. ARCH, Invus, Fidelity, Viking and Maraganore bought preferred stock in private rounds.

Credit rating

No public credit rating found

• ARCH Venture Fund XII reports 25.6% after the offering (Schedule 13D filed Oct 26, 2026). Director Robert Nelsen sits on ARCH's investment committee.
• Biogen's $30.0 million note converted into shares at the IPO, at a 15% discount to the offering price. Bausch + Lomb's $10.0 million note became preferred stock earlier.
• Biogen and Bausch + Lomb provided all the revenue in every period in the 424B4.
• Alexandria Real Estate Equities' subsidiary is the landlord, and Alexandria Venture Investments is an investor. Rent and facility fees paid were $4.2 million in FY2024 and $6.2 million in FY2025.
• John Maraganore and ARCH held convertible notes of $0.5 million and $4.5 million, which became Series A preferred stock in 2024.

Cases are listed as the offer document describes them. A pending case is an allegation until a court or regulator decides it.

• Execution

  No approved product

  City Therapeutics began its first trial in 2026 and has completed none. The 424B4 says it may never obtain approval for any candidate.

  Watch Further CITY-FXI results, which the company said on Oct 15, 2026 it expects in late 2026.

• Cash and liquidity

  Continuing losses and need for capital

  Net loss was $58.5 million in FY2025 and $53.4 million in the six months to Jun 30, 2026. The company said in its 424B4 (Oct 15, 2026) that losses will continue and it will need substantial further capital.

  Watch Cash and cash used in operations in the first Form 10-Q.

• Technology

  An unproven approach

  The 424B4 calls the platform novel and unproven. Trials may fail, be delayed or not repeat results seen in animals.

  Watch Whether Phase 2 goes ahead and what it measures.

• Concentration

  All revenue from two partners

  Biogen provided 55.3% and Bausch + Lomb 44.7% of revenue in the six months to Jun 30, 2026.

  Watch Bausch + Lomb's candidate choice. The company said in its 424B4 (Oct 15, 2026) that it plans to largely finish its research so Bausch + Lomb can select by late 2026.

• Other

  Reliance on licensed rights and outside suppliers

  cityRNA rights are licensed from Ohio State Innovation Foundation. Trials and manufacturing depend on third parties, including limited-source suppliers, some in China.

  Watch Any change to supply arrangements in later filings.

• Regulation

  China exposure

  The CITY-TFR2 trial in China runs through a local sponsor, Overland Therapeutics, so the company has less control, and regulators may not accept the data. US trade policy could raise costs or disrupt supply.

  Watch Whether the trial starts and how regulators treat its data.

• Competition

  Larger rivals

  The 424B4 says rivals often have greater resources and may be more advanced. Bayer, Bristol-Myers Squibb and Johnson & Johnson are among those named as active on Factor XI.

  Watch Rival Factor XI results reported in their own filings.

• Immediate dilution

  The 424B4 states dilution to buyers at $18.00 of $10.87 per share with the option, against as-adjusted net tangible book value of $7.13 per share.

• Insiders and large holders hold about 51.5%, before the option

  Officers, directors, 5% holders and affiliates hold about 51.5% after the offering, without the option or purchases in it, per the 424B4. It says their purchases can reduce the shares available to trade.

• Share price can move sharply

  The 424B4 lists a volatile share price as a risk. Nasdaq's table shows a $23.00 open on Oct 16, 2026 and a $16.41 close on Nov 4, 2026.

• Shares unlock after 180 days

  Holders of substantially all existing stock agreed to a 180-day lock-up (what this means)lock-upA period after an IPO when insiders agree not to sell their shares. Learn more from Oct 15, 2026. Goldman Sachs and Jefferies can consent to an earlier release.

• More money will be needed

  The 424B4 says more capital will be needed for later trials and any launch, and that the company may use up its cash sooner than it expects.

• Less disclosure as an emerging growth company

  The 424B4 gives two audited years, and the company is both an emerging growth company and a smaller reporting company.

What does City Therapeutics do?

City Therapeutics is a Cambridge, Massachusetts biotech founded in July 2023 that develops RNA interference (RNAi) medicines, which silence the genes behind a disease. At its 424B4 dated Oct 15, 2026, it had no approved product and 81 full-time employees (Sep 1, 2026).

How does City Therapeutics make money?

City Therapeutics has no product revenue. All its revenue comes from collaborations with Bausch + Lomb and Biogen, and was $13.6 million in FY2025 and $6.4 million in the six months to Jun 30, 2026, per its 424B4.

What is City Therapeutics' business model?

City Therapeutics spends investors' money and partners' fees on research into RNAi medicines. Its partnership deals pay upfront fees and possible milestones and royalties. In FY2025 it spent $58.4 million on research and development against $13.6 million of revenue, per its 424B4.

Is City Therapeutics profitable?

No. City Therapeutics' net loss was $58.5 million in FY2025 and $53.4 million in the six months to Jun 30, 2026, per its 424B4. Its accumulated deficit, total losses so far, was $142.5 million at Jun 30, 2026.

What is City Therapeutics' revenue by partner?

City Therapeutics reports one business with no segments. In the six months to Jun 30, 2026, Biogen provided $3.5 million (55.3%) of its revenue and Bausch + Lomb $2.8 million (44.7%), per its 424B4.

How big is City Therapeutics?

City Therapeutics' revenue was $13.6 million in FY2025 (year to Dec 31, 2025), up from $2.8 million in FY2024, per its 424B4. Its total assets were $208.6 million at Jun 30, 2026, before the IPO.

Who owns City Therapeutics?

ARCH Venture Fund XII is City Therapeutics' largest holder, reporting 25.6% in a Schedule 13D filed Oct 26, 2026. Invus reports 8.1% and Viking 7.0% in Schedules 13G. Officers and directors held 11.14% before the offering, at Sep 11, 2026.

What is CITY-FXI?

CITY-FXI is City Therapeutics' most advanced drug candidate, aimed at Factor XI, a blood-clotting protein. It was in a Phase 1 trial in healthy volunteers at the 424B4 dated Oct 15, 2026, the only company trial so far, and earns no revenue.

What are CITY-RBP4 and CITY-TFR2?

CITY-RBP4 and CITY-TFR2 are City Therapeutics' next two drug candidates, for Stargardt eye disease and anemia with myelofibrosis. At the 424B4 dated Oct 15, 2026, a Phase 1 application had been filed for CITY-RBP4 and CITY-TFR2 was preclinical. Neither earns revenue.

What is the City Therapeutics IPO?

City Therapeutics sold 12,777,777 new shares at $18.00 under its 424B4 dated Oct 15, 2026, including the underwriters' option. Gross proceeds were about $230.0 million (Cityfort calculation from the 424B4 and Schedule 13D filed Oct 26, 2026). Its shares first traded on Nasdaq as CTY on Oct 16, 2026.

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