MapLight Therapeutics Aims for $262M IPO to Fund Schizophrenia and Alzheimer's Programs

MapLight Therapeutics, a California-based biotech company, has unveiled plans for an initial public offering (IPO) on the Nasdaq, aiming to raise up to $262 million. The company intends to use the proceeds to advance its pipeline, with a particular focus on challenging Bristol Myers Squibb's schizophrenia medication, Cobenfy.

IPO Details and Financial Outlook

MapLight plans to offer 14.7 million shares priced at $17 each, according to an October 6 filing with the Securities and Exchange Commission (SEC). This move is expected to generate net proceeds of $227.3 million, potentially increasing to $262.3 million if underwriters exercise their option to purchase an additional 2.21 million shares at the same price.

The company's financial position has been precarious, with a reported deficit of $251.6 million as of June 30, and only $60.5 million in cash on hand. Despite backing from pharmaceutical giants like Sanofi and Novo Holdings, MapLight's ambitious research programs have resulted in significant cash burn.

Pipeline Developments and Funding Allocation

MapLight's IPO proceeds are earmarked for several key research initiatives:

1. Up to $120 million will fund the ongoing phase 2 study of ML-007C-MA, an M1/M4 muscarinic agonist for schizophrenia. This 300-person trial commenced in July.

2. Approximately $70 million is allocated for a phase 2 study of ML-007C-MA in Alzheimer's disease psychosis, which began last month.

3. Up to $25 million will support an ongoing phase 2 study of ML-004, a 5-HT agonist for autism spectrum disorder.

4. As much as $40 million is designated for preclinical studies of ML-009, a GPR52 positive allosteric modulator, and ML-021, an M4 antagonist.

Market Context and Industry Trends

MapLight's IPO comes at a time when the biotech IPO market has been largely stagnant. If successful, it would become only the second biotech to go public since February, following LB Pharmaceuticals' recent $285 million listing. Notably, both MapLight and LB Pharmaceuticals are focusing on schizophrenia treatments, suggesting a renewed interest in this therapeutic area.

The schizophrenia treatment landscape has seen limited innovation for decades until Bristol Myers Squibb's Cobenfy approval last year. However, several rival candidates from companies like Boehringer Ingelheim, AbbVie, and Atai Life Sciences have faced challenges in clinical trials, underscoring the difficulty of developing effective treatments in this space.