Lycia IPO: how the business makes money

Lycia develops experimental medicines meant to clear harmful proteins from outside cells; nobody buys a product from it yet, so money from investors pays for the research.

• 01Its only revenue has come from an Eli Lilly collaboration: $6.7 million in FY2025. Lilly ended the deal, effective Feb 12, 2026.
• 02In the six months to Jun 30, 2026, revenue was $0. Lycia spent $17.3 million on research and development and $3.6 million on general and administrative costs.

New shares sold by the company

$365M · 20.29 million shares

Listed on

Nasdaq

Ticker

LYCA

Lock-up on existing holders

180 days

Listing date (as stated)

Oct 23, 2026

• 01New shares only: no existing stockholder sold in the offering. The money, after underwriting costs, goes to Lycia.
• 02The S-1/A of Oct 20, 2026 expected $16.00 to $18.00 a share for 14,700,000 shares. The 424B4 set $18.00 for 17,640,000 shares.
• 03The underwriters had an option on 2,646,000 more shares. Lycia's Oct 26, 2026 closing release says they bought them all. No company SEC filing states this yet, though Venrock's Schedule 13G uses the matching share count.
• 04Trading began on Nasdaq on Oct 23, 2026. Nasdaq's price table shows an open of $28.55 and a close of $30.00, 58.6% and 66.7% above $18.00 (Cityfort calculation from Nasdaq's price table and the 424B4).
• 05Nasdaq's price table shows a close of $28.92 on Nov 4, 2026. These are dated facts about the shares, not a view on the price.
• 06With the option, the prospectus shows existing holders owning 64.8% of the shares after the offering and buyers in it 35.2%.

Lycia, its officers and directors, and holders of substantially all its securities agreed not to sell for 180 days after the prospectus date of Oct 22, 2026. Jefferies and TD Securities may release shares early at their sole discretion.

Underwriters

5 named in the S-1 (lead: Jefferies LLC, TD Securities (USA) LLC (TD Cowen), Evercore Group L.L.C. (Evercore ISI), Guggenheim Securities, LLC)

Controlled company

The prospectus does not say Lycia will be a controlled company under Nasdaq rules.

Lead underwriters

Jefferies LLC, TD Securities (USA) LLC (TD Cowen), Evercore Group L.L.C. (Evercore ISI), Guggenheim Securities, LLC

Transfer agent

Computershare Trust Company, N.A.

Source: Form 424B4 final prospectus, initial public offering (dated Oct 22, 2026); Schedule 13G, Venrock Healthcare Capital Partners entities (event Oct 23, 2026); Nasdaq historical prices, LYCA, Oct 23 to Nov 4, 2026 and 1 more

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

• LCA-0061 (food allergy) clinical development, substantially through a planned Phase 2 trialAbout $80.0 million, as stated in the prospectus.$80M
• LCA-0062 (food allergy or other IgE-driven disease) clinical development, substantially through a planned Phase 2 trialAbout $70.0 million, as stated in the prospectus.$70M
• LCA-0321 (Graves' disease) clinical development, substantially through a planned Phase 2 trialAbout $90.0 million, as stated in the prospectus.$90M
• Research pipeline, other research and development, working capital and general corporate purposesThe remainder. The prospectus gives no amount.Amount not fixed

The company says the money should fund its plans into the second half of 2029. It also says this is not enough to take any drug candidate through approval, and that it will need substantial additional capital.

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

• LCA-0061 (Phase 1 trial, not for sale)

  Designed to remove IgE, an antibody behind allergic reactions, for food allergy. It is in a Phase 1 trial in Canada, the first small test in people. Preliminary data from one 70 mg group showed mean total IgE down 92% at 24 hours, per the prospectus.

• LCA-0062 (before human trials)

  A second IgE-removing candidate, built as a bispecific antibody. It is in the lab work needed before regulators can clear a human trial; the prospectus says clearance is not guaranteed.

• LCA-0321 (Phase 1 trial, not for sale)

  Designed to remove the antibodies that overstimulate the thyroid in Graves' disease. It is in a Phase 1 trial in patients in the Netherlands.

• Other early programs

  Lab-stage programs for autoimmune, inflammatory and allergic diseases. The prospectus gives no data dates for them.

• No product buyers

  Not disclosed

  Lycia has no approved product, so no patient, doctor or insurer pays it. Revenue was $0 in the six months to Jun 30, 2026.

• Eli Lilly (ended)

  100%

  of revenue

  A collaboration from August 2021 on up to 5 targets: $35.0 million upfront, plus a $2.0 million extension fee in August 2025. No milestones were achieved. All FY2025 revenue came from it.

• Investors (not customers)

  Not disclosed

  Investors supplied about $266.6 million from inception to Jun 30, 2026, per the prospectus, before the IPO. This is funding, not revenue.

1. 1The Eli Lilly collaboration brought $6.7 million of revenue in FY2025. There was no product revenue, and the deal has since ended.
2. 2Net interest and other income added $4.7 million, and a tax benefit $0.2 million.
3. 3Research and development cost $40.5 million. General and administrative costs were $6.1 million, and a June 2025 restructuring and impairment $1.5 million.
4. 4Costs were $36.5 million more than the money that came in. That is the net loss.
5. 5Cash raised earlier from investors covered the gap. In the six months to Jun 30, 2026, revenue was $0 and a new share sale raised $75.0 million before costs.

• Money for trials

  Research and development cost $40.5 million in FY2025. Cash and marketable securities were $148.1 million at Jun 30, 2026, before the IPO.

• Scientists

  31 full-time employees at Jun 30, 2026, of whom 23 work in research and development.

• Outside manufacturers

  Lycia has no factory of its own. Several contract manufacturers make its candidates, some of them in China.

• Patents and licenses

  At Jun 30, 2026 the LYTAC platform had 15 owned patent families and 1 from Stanford, with 3 granted US patents. LCA-0321 also relies on a non-exclusive license from RSR, with milestones of up to $12.0 million.

• Xolair (omalizumab)

  Blocks IgE rather than removing it. It won FDA approval for food allergy in February 2024. By 2025 over 100,000 US food allergy patients were prescribed it, and US annual sales were over $4 billion, per the prospectus.

• Palforzia (peanut allergen powder)

  The first FDA-approved oral immunotherapy, from January 2020, per the prospectus. The prospectus says low uptake led to sales ending in July 2026.

• Anti-thyroid drugs

  One of the most common Graves' disease treatments. The prospectus says they achieve remission in about 45% of patients.

• Emerging Graves' disease medicines

  Types the prospectus lists: FcRn inhibitors and IgG-targeting agents, TSHR-blocking antibodies and small molecules, and FcγRIIb-based approaches.

• LCA-0061 in food allergy

  Early

  Mean total IgE down 92% at 24 hours in one preliminary group (prospectus)

  The prospectus says food allergy affects more than 33 million people in the US. The trial is unfinished, and safety data are blinded.

  Status: Early, too early to judge.

• LCA-0062 in food allergy

  New

  $4.1 million of research and development in the six months to Jun 30, 2026

  It is still before human trials. A Phase 1 trial needs regulatory clearance, which the prospectus says is not guaranteed.

  Status: New, recently announced.

• LCA-0321 in Graves' disease

  Early

  About 3 million US adults affected (prospectus)

  Worldwide sales of Graves' disease treatments are expected to reach about $7 billion by 2032, according to Evaluate Pharma, as cited in the prospectus. Lycia plans a Phase 2b trial if results support it.

  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.

Lycia 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

• Cash includes cash equivalents and current and non-current marketable securities. Net cash is a Cityfort calculation from the 424B4 dated Oct 22, 2026: cash less no borrowings. Operating lease liabilities of $1.5 million current and $1.7 million non-current are not counted as debt here.
• Net worth is a stockholders' deficit of $132.1 million because $277.1 million of preferred stock sat outside equity until it converted at the IPO.
• With the full option, the prospectus shows pro forma cash, after the offering, of $483.7 million.
• Lycia estimates cash and marketable securities of about $138.2 million at Sep 30, 2026, before the IPO money. This figure is preliminary and unaudited, and KPMG has not reviewed it.
• The accumulated deficit, all losses to date, was $136.8 million at Jun 30, 2026.

Officers and directors (as a group), shares

10.3%

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.

• Aetna Wun Trombley, Ph.D.

  President, Chief Executive Officer and director · since 2020

• Amy Bachrodt

  Chief Financial Officer · since 2026

  Previously at Maze Therapeutics.

• Chin Lee, M.D.

  Chief Medical Officer · since 2025

  Previously Chief Medical Officer at Allakos.

• Steve Staben, Ph.D.

  Chief Scientific Officer · since 2021

  Previously at Genentech.

• Sofia Touami, Ph.D.

  Chief Business Officer · since 2023

  Previously Chief Business Officer at Hexagon Bio.

• William J. Rieflin

  Chair of the board · since 2020

  Former Chief Executive Officer of NGM Biopharmaceuticals.

• Laurent Fischer, M.D.

  Director · since 2019

  Former Chief Executive Officer of Adverum Biotechnologies.

• Jane Pritchett Henderson

  Director · since 2026

  Chief Financial Officer of Apogee Therapeutics.

Auditor

KPMG LLP, since 2022

Auditor changes

None in the period covered

Audit qualifications

None reported

Related-party dealings

Holders of more than 5% bought preferred stock in Lycia's 2024 and 2026 private rounds, and some hold registration rights. Directors and officers have indemnification agreements. Lycia adopted a written related-party policy in connection with the IPO.

Credit rating

No public credit rating found

• Series C, April and May 2024: Venrock put in $35.0 million, RTW $20.0 million, Redmile $10.0 million and Blue Owl $7.8 million, out of $106.6 million gross.
• Series D, June 2026: Janus Henderson put in $22.0 million, Venrock $9.0 million and RTW $5.0 million, out of $75.0 million gross.
• In the IPO, Venrock bought 1,944,444 shares at $18.00, which is $35.0 million (Cityfort calculation from Form 4 filed Oct 27, 2026).
• An investors' rights agreement with certain preferred holders gives demand, piggyback and Form S-3 registration rights, which let them require or join a registered share sale.

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 and no finished trial

  Lycia says it has a limited operating history, has completed no clinical trial and has no product approved for sale.

  Watch Whether later filings report a completed trial.

• Cash and liquidity

  Losses and more money needed

  The accumulated deficit was $136.8 million at Jun 30, 2026. Lycia says it may never be profitable and will need substantial additional capital even after the IPO.

  Watch Cash and net loss in the first Form 10-Q.

• Technology

  One technology behind every candidate

  The prospectus says Lycia is substantially dependent on its LYTAC platform. A setback to the platform could affect all its candidates.

  Watch Safety and IgE results in later LCA-0061 groups.

• Execution

  Early results may not hold up

  The LCA-0061 data come from one group at one 70 mg dose, followed for 35 days, with safety data blinded. Lycia says early results may not predict later trials.

  Watch The further LCA-0061 data Lycia says it expects in 2027.

• Regulation

  Trials outside the US

  Its trials are in Canada and the Netherlands. The prospectus says the FDA may not accept data from outside the US.

  Watch Any US trial clearance reported in later filings.

• Competition

  Competition from approved treatments

  Xolair is already approved for food allergy, and the prospectus says over 100,000 US food allergy patients were prescribed it by 2025. Lycia says many rivals have more money.

  Watch New approvals in food allergy and Graves' disease named in later filings.

• Concentration

  Reliance on outside firms, some in China

  Lycia relies on third parties to run trials and make its candidates, and some manufacturers are in China. It has no factory of its own.

  Watch Changes in manufacturers reported in later filings.

• Legal

  Rights that depend on licenses

  Some of its rights come from Stanford and RSR. The RSR license carries milestones of up to $12.0 million, with the first $0.3 million due by Jan 31, 2027 or an earlier trial filing.

  Watch The RSR milestone payment in the next filings.

• Existing holders keep significant influence

  Officers, directors, 5% holders and affiliates held 71.7% before the offering and about 50.1% after, per the prospectus. That figure assumes no option and no purchases in the offering.

• Shares unlocked after 180 days

  37,394,559 existing shares are restricted and generally become eligible for sale after the lock-up (what this means)lock-upA period after an IPO when insiders agree not to sell their shares. Learn more. The prospectus says sales after it may lower the share price.

• A volatile share price

  The prospectus warns that the share price may be volatile.

• Broad discretion over the money

  The prospectus says management will have broad discretion over the net proceeds, including the part with no stated amount.

• Provisions that could delay a takeover

  The prospectus lists charter terms and Delaware law, including a classified board, that could prevent or delay an acquisition of Lycia.

• Less disclosure than larger companies

  As an emerging growth company, Lycia gives 2 audited years instead of 3. Its auditor does not have to attest to its internal controls while that status lasts.

What does Lycia Therapeutics do?

Lycia Therapeutics is a South San Francisco biotech developing LYTAC degraders, experimental medicines meant to carry disease-causing proteins into a cell's lysosome to be broken down. It had 31 full-time employees at Jun 30, 2026 and no approved products, per its prospectus dated Oct 22, 2026.

How does Lycia make money?

Lycia does not make money from products. Its business model so far is research paid for by investors, plus collaboration revenue from Eli Lilly: $14.9 million in FY2024 and $6.7 million in FY2025. Lycia had $0 of revenue in the six months to Jun 30, 2026.

Is Lycia profitable?

No. Lycia's net loss was $36.5 million in FY2025 and $19.2 million in the six months to Jun 30, 2026. In those six months its operating loss was $20.9 million, and net other income, mostly interest, was $1.7 million.

Who are Lycia's customers?

No customer pays Lycia for a product, per its Oct 22, 2026 prospectus. Eli Lilly was its only source of revenue, $6.7 million in FY2025, and Lilly's termination of the collaboration took effect on Feb 12, 2026.

What is Lycia's revenue by segment?

Lycia reports one operating segment, per the notes in its prospectus dated Oct 22, 2026. All of Lycia's FY2025 revenue of $6.7 million was collaboration revenue from Eli Lilly.

Who owns Lycia?

Before Lycia's IPO, at Sep 30, 2026, Versant Ventures held 18.9%, Venrock 12.8%, Redmile 11.1%, RTW 9.7% and Janus Henderson 9.3%, per the prospectus. Officers and directors as a group held 10.3%.

What is the Lycia IPO?

Lycia sold 17,640,000 shares at $18.00 under its prospectus dated Oct 22, 2026, with an underwriters' option on 2,646,000 more. Lycia's common stock began trading on Nasdaq as LYCA on Oct 23, 2026.

What is Lycia's LCA-0061?

LCA-0061 is Lycia's experimental medicine for food allergy and other allergic disease, designed to remove IgE, an antibody behind allergic reactions. It was in a Phase 1 trial in Canada, per the prospectus dated Oct 22, 2026.

What is Lycia's LCA-0062?

LCA-0062 is Lycia's second IgE-removing candidate, a bispecific antibody for food allergy or other IgE-driven disease. It had not entered human trials at the date of the Oct 22, 2026 prospectus.

What is Lycia's LCA-0321?

LCA-0321 is Lycia's experimental medicine for Graves' disease, an autoimmune cause of an overactive thyroid. It was in a Phase 1 trial in patients in the Netherlands, per the prospectus dated Oct 22, 2026.

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