LB Pharmaceuticals Inc Common Stock (LBRX)

FairStock Score: 26/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look for durable earnings power, honest accounting, and a margin of safety. LB Pharmaceuticals is a clinical-stage biopharmaceutical company with 49 employees and no reported revenue in the filed figures. Its lead candidate, LB-102, is in Phase 3 for acute schizophrenia and has completed Phase 2 for bipolar I depression and adjunctive MDD. That is a scientific option, not a proven moat; any future protection would come from patents or regulatory exclusivity, which remain unproven. The finances are weak. In fiscal Q2 2026, the quarter ended 2026-06-30, net income was -$51.6M and diluted EPS -$1.71. In fiscal Q1 2026, net income was -$19.1M. FY2025 net income was -$25.2M; FY2024 was -$63.1M. Trailing free cash flow was -$82.8M, a FairStock FCF yield of -7.4% against the $1.1B market cap at the 2026-10-13 close. FairStock also shows P/E -6.82, P/B 3.00, ROE -50%, ROCE -29.98%, Piotroski F-Score 0/9, and FairStock Score 26/100. Debt is low at D/E 0.02, and Altman Z-Score is 23.27, so balance-sheet distress is not the immediate problem; cash burn is. The FairStock Lynch category is none because only two years of filed results exist. At $34.79, the market pays over $1B for no sales and mounting losses. I cannot compute an intrinsic value from earnings. This is speculation on clinical outcomes, and I would demand a far lower price or commercial proof before calling it a value opportunity.

In plain English: LB Pharmaceuticals is a small healthcare company trying to develop medicines for schizophrenia and bipolar depression. It has no reported product sales and is losing money, including a $51.6 million loss in the quarter ended June 30, 2026. At $34.79 per share, the stock looks expensive compared with those current numbers, even though its main drug is in late-stage testing.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer