Latigo Biotherapeutics Files for $288 Million IPO to Fund Non-Opioid Pain Drug

Latigo Biotherapeutics Inc., a clinical-stage company developing non-opioid pain medications, has filed to raise up to $288 million in an initial public offering. The move seeks to secure funding for the company's late-stage clinical trials as it aims to bring a new alternative to conventional opioid painkillers to market.

Offering Details

According to a filing with the U.S. Securities and Exchange Commission, the company plans to offer 16 million shares at a price range of $16 to $18 each. At the top end of this range, Latigo Biotherapeutics would achieve a market capitalization of approximately $1.1 billion.

The company, which is backed by investment firm Blue Owl Capital Inc., intends to list its shares on the Nasdaq Global Select Market under the ticker symbol LTGO. The offering is being led by a syndicate of banks including Goldman Sachs Group Inc., Jefferies Financial Group Inc., Leerink Partners, and Guggenheim Securities.

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Clinical Pipeline and Financials

Latigo's primary focus is its lead drug candidate, which the company reported demonstrated approximately 50% greater pain relief than the opioid medication Vicodin in a clinical trial. The company stated in its filing that it plans to initiate a Phase 3 trial for moderate-to-severe acute pain this year, with results anticipated in the second half of 2027.

As a clinical-stage firm, Latigo is not yet profitable and is investing heavily in research and development. The company reported a net loss of $23 million for the three months ended March 31, an increase from a $21 million net loss in the same period last year. According to the filing, Latigo has raised about $321.5 million since its inception in 2018 and held $54.8 million in cash and equivalents at the end of June.