Iambic IPO: how the business makes money

Drug companies pay Iambic to use its AI models and robotic labs on their programs; most of its spending goes on research, and it makes a net loss.

• 01Iambic has no approved product and no product revenue. All its revenue so far comes from partners: $9.4 million in FY2025 and $12.8 million in the six months to Jun 30, 2026.
• 02It spent $91.8 million on operations in FY2025, and its net loss was $77.3 million. Money from investors paid for the gap.

New shares sold by the company

$150M · 9.38 million shares

Listed on

Nasdaq

Ticker

IAM

Lock-up on existing holders

180 days

Listing date (as stated)

Oct 15, 2026

• 01New shares only: Iambic itself sold all the shares, so the money goes to the company. No existing stockholders sold.
• 02After $10.5 million of underwriting discounts and about $4.5 million of expenses, Iambic estimated it would keep about $135.0 million.
• 03Underwriters had 30 days to buy up to 1,406,250 more shares from Iambic. No filing on EDGAR as of Nov 5, 2026 says whether they did.
• 04At the IPO, preferred stock turned into 28,524,929 common shares and $66.5 million of convertible notes into 4,949,237. The 424B4 counts 47,400,796 shares outstanding after the offering.
• 05ARK Investment Management, an existing investor, and Duquesne Family Office indicated interest in buying up to $60.0 million of shares at the offering price. The 424B4 says this was not binding. Actual purchases are not disclosed.
• 06Nasdaq's price table shows the shares opened at $16.15 and closed at $18.91 on Oct 15, 2026, the first trading day. They closed at $13.40 on Nov 4, 2026.

Iambic, its directors and officers, and substantially all holders agreed not to sell for 180 days after the prospectus date. The underwriters' representatives may release them earlier at their sole discretion. All 9,375,000 shares sold in the offering could trade from the start.

Underwriters

4 named in the S-1 (lead: J.P. Morgan Securities LLC, Jefferies LLC, BofA Securities, Inc., Citigroup Global Markets Inc.)

Controlled company

The 424B4 does not say Iambic will be a controlled company under Nasdaq rules.

Lead underwriters

J.P. Morgan Securities LLC, Jefferies LLC, BofA Securities, Inc., Citigroup Global Markets Inc.

Transfer agent

Computershare Trust Company, N.A.

Source: Iambic Therapeutics, Inc. final prospectus, Form 424(b)(4), dated Oct 14, 2026; Nasdaq historical prices for IAM, Oct 15 to Nov 4, 2026; EDGAR submissions index, Iambic Therapeutics, Inc., CIK 0001997038, read Nov 5, 2026

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

• IAM1363: finish the Phase 1 trial, start one or more Phase 2 trials and start a Phase 3 trialThe 424B4 says the Phase 2 trials are intended to support potential accelerated approval, subject to FDA feedback. The amount is approximate.$75M
• IAM217: start a Phase 1/2 trial and take it through Phase 1 dose escalationThe amount is approximate.$15M
• IAM-C1: start a Phase 1/2 trial and take it through Phase 1 dose escalationThe amount is approximate.$15M
• Platform: new versions of Enchant and NeuralPLexer, lab automation equipment and agent softwareThe amount is approximate.$20M
• Working capital and general corporate purposesThe remainder. The 424B4 gives no amount.Amount not fixed

About $20.0 million is for the AI platform and lab automation, and the rest is for working capital and general corporate purposes. The 424B4 lists no payment to affiliates. Iambic estimated in its 424B4 dated Oct 14, 2026 that its existing cash plus this money funds operations into or through the fourth quarter of 2028; that is its statement.

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

• IAM1363 (its own drug)

  An oral, brain-penetrant small molecule aimed at tumors with HER2 gene changes. It was in a Phase 1/1b trial, the earliest human testing, with over 100 subjects dosed as of September 2026.

• IAM217 (its own drug)

  Aimed at a protein called KIF18A. Iambic asked the FDA on Sep 30, 2026 for clearance to test it in people (an IND). Iambic said in its 424B4 dated Oct 14, 2026 that it plans a Phase 1/2 trial, subject to that clearance.

• IAM-C1 (its own drug)

  Aimed at proteins called CDK2 and CDK4, and still preclinical, meaning not yet tested in people. Iambic said in its 424B4 dated Oct 14, 2026 that it anticipates an IND in the fourth quarter of 2026.

• The AI and lab platform

  Enchant predicts how a molecule may behave in lab and clinical tests. NeuralPLexer predicts the 3D shape of biological molecules. Automated labs make and test hundreds of compounds per program each week.

• Partner collaborations

  Iambic has made eight collaborations since 2024. Takeda, Lundbeck and Revolution Medicines provided all revenue through Jun 30, 2026; AbbVie signed on Sep 18, 2026.

• Takeda

  49%

  of revenue

  February 2026 agreement on 3 targets, with a right to 3 more. $27.0 million upfront, research costs reimbursed, plus fees for NeuralPLexer access. Revenue was $6.2 million in the six months to Jun 30, 2026. Contingent milestones could exceed $1.7 billion, per the 424B4.

• Lundbeck

  33%

  of revenue

  September 2024 agreement over 36 months with $10 million upfront and research costs reimbursed. Revenue was $4.2 million in the six months to Jun 30, 2026. Contingent milestones after an option are up to $212.5 million, plus possible further payments for US approval in more than one indication.

• Revolution Medicines

  19%

  of revenue

  May 2025 agreement; the upfront amount is not stated. Revenue was $2.4 million in the six months to Jun 30, 2026.

• AbbVie

  Not disclosed

  Sep 18, 2026 agreement on 2 targets, after the period above. It requires $40.0 million upfront. Contingent milestones are up to $670 million in total, and tiered royalties on net sales run from the mid-single digits to the low teens.

• Bayer, NVIDIA, Lambda and Jazz

  Not disclosed

  Bayer signed a research collaboration in June 2026. Iambic counted no revenue from it in the six months to Jun 30, 2026, when the remaining transaction price was $4.0 million through 2028; the upfront fee is not stated. NVIDIA and Lambda are technology and computing partners, and a study pairs IAM1363 with Jazz's zanidatamab. None appears in the 424B4's revenue by partner, and amounts for NVIDIA and Lambda are not stated.

1. 1Partners provided $9.4 million of revenue in FY2025. Interest on Iambic's cash added $5.2 million.
2. 2Research and development cost $77.5 million: $22.1 million on IAM1363, $25.2 million on discovery and the platform, $25.3 million on staff and $5.0 million on facilities and other.
3. 3General and administrative costs were $14.2 million. Operating costs reached $91.8 million, an operating loss of $82.4 million after revenue.
4. 4Interest expense, other expense and tax took another $0.2 million.
5. 5Costs were $77.3 million more than the money that came in. That is the net loss. Financing brought in $99.1 million that year.

• Money from investors

  From its start through Sep 18, 2026, Iambic took in $536.5 million: $461.8 million from equity, notes and similar instruments, and $74.7 million from partners.

• Scientists

  171 full-time employees at Sep 18, 2026, of whom 140 work in research and development. 119 hold advanced degrees. They are in San Diego and Bristol, UK.

• Computing power and data

  Cloud computing and storage costs rose $3.8 million in FY2025 and $2.6 million in the six months to Jun 30, 2026. The 424B4 lists reliance on third-party data and computing as a risk.

• Outside drug manufacturers

  Iambic owns no manufacturing sites and uses contract manufacturers. The 424B4 says a significant portion of that outside manufacturing is with firms in or affiliated with China.

• Lab space

  All sites are leased. A new San Diego headquarters of about 95,985 square feet carries about $40.9 million of future lease commitments.

• Recursion

  Named in the 424B4 as a representative technology-driven drug discovery company. Iambic's Chief Financial Officer was previously Recursion's.

• Isomorphic Labs, Insilico Medicine, Xaira Therapeutics, Relay Therapeutics

  Named in the 424B4 as representative technology-driven drug discovery companies.

• AbCellera, Absci, Chai Discovery, Enveda Biosciences, Generate Biomedicines, LILA Sciences, XtalPi

  Also named in the 424B4 as representative technology-driven drug discovery companies.

• Anthropic, OpenAI

  Named in the 424B4 as general-purpose AI developers whose models may raise competition in drug development.

• Accent, GenHouse Bio, Menarini, Volastra

  Named in the 424B4 as having KIF18A candidates, the target of IAM217.

• Pfizer, Genentech, Incyclix Bio

  Named in the 424B4 as having CDK candidates, the target family of IAM-C1.

• IAM1363

  Early

  Confirmed tumor response in 12 of 53 efficacy-evaluable patients (23%), company-reported interim data at Aug 31, 2026

  Preliminary, and not powered for comparison, per the 424B4. A response means a tumor shrank by a set amount. At the 960 mg dose, 4 of 68 patients (6%) had a Grade 3 treatment-related side effect, with no Grade 4 or 5.

  Status: Early, too early to judge.

• IAM217

  New

  IND submitted Sep 30, 2026; about $15.0 million planned from IPO money plus existing cash (424B4 dated Oct 14, 2026)

  Iambic said in its 424B4 dated Oct 14, 2026 that it plans a Phase 1/2 trial, subject to regulatory clearance.

  Status: New, recently announced.

• IAM-C1

  New

  Preclinical; about $15.0 million planned from IPO money plus existing cash (424B4 dated Oct 14, 2026)

  Iambic said in its 424B4 dated Oct 14, 2026 that it anticipates an IND in the fourth quarter of 2026.

  Status: New, recently announced.

• Partner agreements

  Early

  $53.4 million of remaining transaction price at Jun 30, 2026 (Takeda $28.0 million, Revolution Medicines $17.6 million, Bayer $4.0 million, Lundbeck $3.8 million). Cityfort calculation from 424B4 filed Oct 15, 2026

  Revenue still to be earned under these agreements, through 2027 to 2030. AbbVie's agreement came later and is not in this figure. Contingent milestones are not included.

  Status: Early, too early to judge.

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.

Iambic 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

• Net cash of $207.9 million is a Cityfort calculation from 424B4 filed Oct 15, 2026: cash less borrowings, of which the balance sheet shows none. Operating lease liabilities of $5.1 million and a lab-equipment finance lease, with $0.105 million due within a year at Jun 30, 2026, are not counted as debt here.
• The stockholders' deficit of $232.6 million reflects $394.0 million of convertible preferred stock held outside equity at Jun 30, 2026. That stock converted to common shares at the IPO.
• The 424B4's pro forma as adjusted figures count the IPO money, the preferred conversion and the $66.5 million of convertible notes issued in August and September 2026. On that basis cash was $409.4 million and equity $363.0 million.
• Deferred revenue of $53.6 million at Jun 30, 2026 is partner money received ahead of the work. AbbVie's $40.0 million upfront is not in these balances, as its agreement is dated Sep 18, 2026.

Officers and directors (as a group), shares

26.9%

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.

• Thomas Miller

  Co-founder, Chief Executive Officer and director · since 2020

  A chemistry professor at Caltech until March 2022. FY2025 total pay was $906,203.

• Frederick Manby

  Co-founder, Chief Technology Officer and director · since 2020

  A chemistry professor at the University of Bristol until March 2022. FY2025 total pay was $707,064.

• Neil Josephson

  Chief Medical Officer · since 2024

  Previously Chief Medical Officer of Zymeworks.

• Peter Olson

  Chief Scientific Officer · since 2024

  Previously at Bristol-Myers Squibb and Mirati Therapeutics. FY2025 total pay was $1,792,988, including $1,182,808 of option awards.

• Michael Secora

  Chief Financial Officer and Chief Corporate Development Officer · since 2025

  Previously Chief Financial Officer of Recursion Pharmaceuticals.

• William Rastetter

  Chairperson of the board · since 2023

  Former Chief Executive Officer of IDEC Pharmaceuticals. Director since March 2023.

• R. Jacob Vogelstein

  Director · since 2021

  Managing Partner of Catalio Capital Management, a holder of 11.0% before the IPO.

• Evan Rachlin

  Director · since 2023

  Managing Partner of Ascenta Capital, a holder of 5.1% before the IPO.

Auditor

Deloitte & Touche LLP, since 2025

Auditor changes

Sep 4, 2025: Ernst & Young LLP → Deloitte & Touche LLP (The board dismissed EY on the audit committee's recommendation. The 424B4 reports no disagreements, and one reportable event: the internal-control weakness remediated as of Dec 31, 2024.)

Audit qualifications

None reported

Related-party dealings

Holders of more than 5%, firms tied to directors and some directors and officers bought Iambic's preferred stock. Catalio, Ascenta and the Rastetter Family Trust bought its convertible notes. The 424B4 says these deals came before its formal related-person policy took effect.

Credit rating

No public credit rating found

• Catalio entities held 11.0% before the IPO and 8.9% after it. Ascenta entities held 5.1% and 4.1%. Each has a director on the board.
• Catalio, Ascenta and the Rastetter Family Trust, linked to the chairperson, bought convertible notes, which turned into shares at the IPO.
• Directors, officers, 5% holders and their affiliates together hold about 28.9% after the offering, per the 424B4.
• NVIDIA was a holder of more than 5% at the time of two preferred stock rounds and is also a technology partner, per the 424B4.

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

• Cash and liquidity

  Large losses and no product revenue

  Iambic's accumulated deficit was $245.3 million at Jun 30, 2026. The 424B4 says it may never be profitable and needs substantial additional capital, which may dilute holders.

  Watch Net loss and cash used in operations in the first 10-Q.

• Concentration

  A few partners provide all revenue

  Takeda, Lundbeck and Revolution Medicines provided all revenue in the six months to Jun 30, 2026. Partners decide whether and how to advance programs, per the 424B4.

  Watch Revenue by partner, and any partner ending an agreement.

• Technology

  An unproven approach

  The 424B4 calls the approach "novel and unproven", and no drug has been approved from it. Iambic relies on third-party data and computing, and AI rules are still changing.

  Watch Results from drugs designed on the platform.

• Execution

  Early-stage drugs

  IAM1363 was in a Phase 1/1b trial; IAM217 and IAM-C1 were preclinical. The 424B4 says most drug candidates never receive regulatory approval.

  Watch FDA feedback on IAM1363 and clearance to test IAM217.

• Execution

  Interim trial data can change

  The IAM1363 figures are from an Aug 31, 2026 data extract, including 4 partial responses awaiting confirmation. The 424B4 says interim data may change on audit and follow-up.

  Watch Later IAM1363 data the company reports.

• Regulation

  Manufacturers linked to China

  A significant portion of Iambic's outside manufacturing is with firms in or affiliated with China. The 424B4 points to trade and national-security proposals that could affect them.

  Watch Changes in US rules on Chinese drug suppliers.

• Competition

  Bigger competitors

  Iambic competes with large drug companies and AI drug discovery firms with more resources, per the 424B4. It also names general-purpose AI developers as a possible source of more competition.

  Watch New partner agreements Iambic signs or loses.

• Legal

  Patents mostly pending

  The HER2 program had 1 issued US and 1 issued foreign patent at Sep 18, 2026. The KIF18A and CDK programs had applications only, which may never issue.

  Watch Patents issued in later filings.

• Immediate dilution

  The 424B4 dated Oct 14, 2026 states pro forma as adjusted net tangible book value of $7.65 per share at Jun 30, 2026, which is $8.35 less than the $16.00 offering price. New investors hold 19.8% of the shares.

• Notes converted at a discount

  The convertible notes turned into shares at a discount to the offering price, which added shares, per the 424B4.

• Shares unlocked after 180 days

  Remaining shares can start to be sold 181 days after the prospectus date, and 9,585,280 of them are held by affiliates under Rule 144. Registration rights cover up to 32,314,496 shares.

• Insiders' stake after the offering

  Directors, officers, 5% holders and their affiliates hold about 28.9% after the offering, per the 424B4.

• Possible purchases by two investors

  The 424B4 says purchases by ARK and Duquesne, if they happened, could reduce the shares' trading liquidity. Actual purchases are not disclosed.

• Less disclosure as an emerging growth company

  The 424B4 gives two audited years instead of three, and Iambic may use other reduced reporting rules as an emerging growth company and a smaller reporting company.

What does Iambic do?

Iambic Therapeutics (San Diego) uses AI models and robotic labs to design experimental medicines, mainly for cancer. Its most advanced drug, IAM1363, was in a Phase 1/1b trial as of September 2026, per its 424B4 dated Oct 14, 2026.

How does Iambic make money?

Iambic has no product revenue because it has no approved product. Its $9.4 million of FY2025 revenue and $12.8 million of revenue in the six months to Jun 30, 2026 came entirely from collaboration agreements with drug companies.

Is Iambic profitable?

No. Iambic's net loss was $77.3 million in FY2025 and $50.1 million in the six months to Jun 30, 2026, per its 424B4. Its accumulated deficit was $245.3 million at Jun 30, 2026.

Who are Iambic's customers?

Three partners paid all of Iambic's revenue in the six months to Jun 30, 2026: Takeda ($6.2 million), Lundbeck ($4.2 million) and Revolution Medicines ($2.4 million), per its 424B4. AbbVie signed an agreement on Sep 18, 2026, after that period.

What is Iambic's revenue by segment?

Iambic reports a single segment, so its 424B4 gives no segment split. By partner, FY2025 revenue was $6.7 million from Lundbeck and $2.7 million from Revolution Medicines, as rounded by the company.

How big is Iambic?

Iambic had $12.8 million of revenue in the six months to Jun 30, 2026, and 171 full-time employees at Sep 18, 2026, per its 424B4. Its cash was $207.9 million at Jun 30, 2026.

What is IAM1363?

IAM1363 is Iambic's most advanced drug, an oral small molecule aimed at tumors with HER2 gene changes. Over 100 subjects had been dosed in its Phase 1/1b trial as of September 2026, per the 424B4. Iambic spent $22.1 million on it in FY2025.

Who owns Iambic?

Iambic's 12 officers and directors held 26.9% at Jun 30, 2026 and 21.7% after the IPO, per the 424B4, before any shares they bought in it. Catalio entities held 11.0% before the IPO and Nexus Ventures V 8.5%.

What is the Iambic IPO?

Iambic sold 9,375,000 new shares at $16.00 each, $150.0 million in total, under its final prospectus dated Oct 14, 2026. No existing stockholders sold. The shares first traded on Nasdaq as IAM on Oct 15, 2026.

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