MapLight uses workaround to tee up IPO during government shutdown

Core Insights - MapLight Therapeutics is advancing plans to go public using a regulatory workaround that allows pricing during a federal government shutdown [1][4] - The company plans to sell 14,750,000 shares at $17 each, with a current investor committing to $40 million and an additional $8 million to be raised through a private deal with Goldman Sachs [2] - The IPO is being set during a time when the SEC is operating at reduced capacity, which poses challenges for companies seeking public market access [3] Regulatory Context - MapLight is utilizing a provision in the Securities Act that makes a registration statement effective 20 days after filing an amended statement [4] - The company has warned of a potential stop order from the SEC that could block the public sale of shares if the government shutdown continues [4] Product Development - MapLight is developing a schizophrenia drug in mid-stage testing, aimed to compete with Bristol Myers Squibb's Cobenfy [5] - The drug targets muscarinic receptors and is designed for more convenient dosing compared to Cobenfy, which requires a multiday titration period [6] - The schizophrenia trial results are expected in 2026, while results for the Alzheimer's psychosis study are anticipated in 2027 [7] Financial Outlook - The IPO could raise an estimated $251 million, making it the third-largest biotech public market debut this year [7] - This offering follows a recent $285 million IPO by LB Pharmaceuticals for its experimental schizophrenia drug [7]