The Drug That Could Take on Opioids
Lower-dose versions for both acute and chronic pain are also in the pipeline.
With the U.S. still grappling with the opioid crisis, non-addictive painkillers have become a priority for regulators and healthcare providers. Latigo's candidate targets the same pain pathways as opioids but without the risk of addiction, offering a potential alternative for millions of patients. Latigo is also working on additional medications for acute and chronic pain at reduced dosages.
The U.S. Centers for Disease Control and Prevention has highlighted the need for non-opioid alternatives, and Latigo's approach directly addresses that call. If approved, the drug could become a key tool in combating an epidemic that claims tens of thousands of lives each year, while the company's pipeline of lower-dose versions may serve both acute post-surgical pain and chronic conditions like arthritis.
Latigo's candidate addresses a critical gap in pain management. While opioids remain widely prescribed, their addiction potential has led to a public health crisis. If approved, Latigo's drug could provide greater pain relief without the risk of dependence, offering hope to millions of patients suffering from acute and chronic pain. The company's pipeline of lower-dose formulations further expands its potential to treat a range of conditions.
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The Money Behind the Filing
Latigo was founded in 2018 and has raised about $321.5 million to date. The filing reveals that Blue Owl Capital led a $150 million Series B round in March 2023. Additional backers include 5AM Ventures, Foresite Capital, and Westlake BioPartners.
As of the end of June, Latigo held $54.8 million in cash and cash equivalents, per the SEC filing. In September, the company generated $34.8 million in net proceeds by issuing convertible notes.
For the quarter ending March 31, Latigo reported a net loss of $23 million, widening from a $21 million loss in the same quarter last year, according to the filing.
The non-opioid pain treatment market has garnered increasing attention amid the ongoing opioid epidemic, with regulators and healthcare providers seeking safer alternatives. Latigo's candidate, if successful in Phase 3, could address a significant unmet need. The company's strong backing from Blue Owl and other investors underscores confidence in its approach, though the real test will come with the trial results expected in late 2025.
The top-performing U.S. IPO this year has been Veradermics Inc., whose shares climbed about 575% from its February debut, signaling renewed investor appetite for high-risk, high-reward drug development. Latigo's filing comes at a time when the FDA has prioritized non-opioid pain treatments, potentially accelerating approval pathways.
Latigo is among several biotech firms that have recently submitted U.S. IPO paperwork, capitalizing on a rebound in funding availability after a prolonged slump.
What This Means for Your Portfolio
Goldman Sachs, Jefferies, Leerink Partners, and Guggenheim Securities are underwriting the offering. Latigo's shares will be listed on the Nasdaq Global Select Market, with the ticker symbol LTGO.
The company is one to keep an eye on, not one to chase on day one. The real story will be written when the trial data comes out.
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