Option Therapeutics Inc. IPO - What You Need to Know

Considering an investment in Option Therapeutics Inc.'s upcoming stock offering? Understanding an Initial Public Offering (IPO) is crucial. This summary breaks down the key details from their preliminary S-1 filing in clear, accessible language.

Important Note: This information comes from Option Therapeutics Inc.'s preliminary S-1 filing with the SEC (U.S. Securities and Exchange Commission), dated January 23, 2026. As a draft document, some details may change before the final IPO.

Let's explore what you need to know:

1. Business Description: What does Option Therapeutics do?

Option Therapeutics Inc. is a biotechnology company that develops new medicines using biology and technology. They specialize in creating innovative treatments for rare neurological disorders.

The company targets conditions often difficult to diagnose and treat, such as specific forms of amyotrophic lateral sclerosis (ALS) and certain types of hereditary neuropathies. Their primary drug candidate, NeuroRestore, is currently undergoing Phase 2b/3 clinical trials for ALS. NeuroRestore aims to repair damaged nerve pathways by targeting specific cellular mechanisms involved in neurodegeneration. This approach seeks to slow disease progression and potentially restore function, moving beyond mere symptom management. Additionally, the company has two earlier-stage candidates in preclinical development for other rare neurological conditions.

2. Financial Highlights: Financial Snapshot

Unlike companies with immediate product sales, Option Therapeutics Inc. operates primarily as a research and development (R&D) company. This means they invest heavily in drug development, conducting clinical trials to ensure safety and efficacy, and preparing for regulatory approvals.

Consequently, the company currently generates minimal to no revenue from product sales. For the nine months ended September 30, 2025, Option Therapeutics reported a net loss of approximately $35 million, primarily due to $28 million in R&D expenses and general administrative costs. As of that date, they held $15 million in cash and cash equivalents.

Their future revenue potential hinges on:

• Approved Drug Sales: If NeuroRestore or other drugs receive approval from health authorities (such as the FDA in the US), the company will sell them to patients through medical channels. The global market for ALS treatments alone is projected to exceed $2 billion by 2030.
• Licensing Deals: Smaller biotech companies often license promising drugs to larger pharmaceutical firms for a fee, which helps fund ongoing research.

While current sales are absent, Option Therapeutics demonstrates growth in its potential. They are expanding their pipeline of drug candidates, enlarging research teams, and advancing NeuroRestore through late-stage clinical trials. This phase builds the foundation for future revenue. However, investors should recognize that actual sales and profits are distant and entirely dependent on their drugs achieving regulatory approval.

3. Use of Proceeds: How will Option Therapeutics use the IPO funds?

This IPO represents a significant fundraising effort for Option Therapeutics. The company has specific plans for the estimated $22.7 million to $27.3 million (before expenses) it expects to raise. The proceeds from selling new shares will primarily be allocated as follows:

• Approximately 60-65% will fund the ongoing Phase 2b/3 clinical trials for NeuroRestore, covering patient enrollment, data analysis, and preparation for potential regulatory submission.
• Approximately 20-25% will advance their preclinical pipeline, identify new drug targets, and expand research capabilities.
• The remaining 10-15% will address general corporate purposes, including working capital, administrative expenses, and potential manufacturing scale-up as NeuroRestore progresses toward approval.

In essence, this IPO provides a crucial capital injection to help the company advance its drug candidates through development and ultimately make them available to patients.

4. Risk Factors: Key Investment Risks

Investing in a biotechnology company like Option Therapeutics carries specific risks. Investors should be aware of the following:

• Clinical Trial Failure: This represents a primary risk. Despite promising early data, NeuroRestore could still fail in its ongoing Phase 2b/3 trials due to insufficient efficacy, unexpected side effects, or other complications. A setback for NeuroRestore would significantly impact the company's valuation.
• Regulatory Approval: Obtaining drug approval from health authorities (such as the FDA) is a lengthy and challenging process. Approval is not guaranteed, and delays are common, particularly given the complex review process for rare diseases.
• Competition: Other companies are also developing treatments for ALS and other neurological disorders. Competitors like Biogen (with tofersen) and Amylyx Pharmaceuticals (with Relyvrio) are either already in the market or have advanced candidates. If a competitor secures approval for a superior or more affordable drug first, it could negatively affect Option Therapeutics' market share.
• Intellectual Property: The company's success heavily depends on its patents protecting NeuroRestore and its other technologies. Any challenges to these patents could severely impact future revenue.
• Future Funding Needs: Even after this IPO, Option Therapeutics may need to raise additional capital if trials extend longer or cost more than anticipated. This could involve issuing more shares, potentially diluting the value of existing shares.
• Market Acceptance & Reimbursement: Even with drug approval, market adoption by doctors and patients is not guaranteed. Furthermore, insurance companies must agree to cover the drug at a favorable price, which poses a significant hurdle for expensive rare disease treatments.

These factors highlight the high potential but also the inherent uncertainty associated with developing cutting-edge medicines.

5. Competitive Landscape: How Option Therapeutics Compares

Given its focus on rare neurological disorders, Option Therapeutics does not directly compete with large pharmaceutical companies producing common medications. However, it operates within the broader biotechnology sector alongside companies specializing in targeted treatments.

Notable competitors in neurological and rare disease research include Biogen and Sarepta Therapeutics. Option Therapeutics seeks to differentiate itself through a unique approach to nerve repair, which it believes could offer greater efficacy or fewer side effects compared to current or developing treatments. NeuroRestore's specific mechanism of action, targeting cellular repair pathways, distinguishes it from many existing therapies that primarily focus on symptom management or alternative methods of slowing disease progression. The company aims to establish a distinct market position with its specialized scientific platform.

6. Management Team: Leadership Overview

Cuong Do leads Option Therapeutics as its Chief Executive Officer. Mr. Do possesses extensive experience in the pharmaceutical and biotech sectors, having previously served as President of Samsung Biologics and held senior leadership roles at Merck and Novartis. His background demonstrates a strong understanding of drug development, manufacturing, and commercialization. His connection to BioVie Inc., the parent company, also provides established operational experience. The complete board of directors and executive team will be fully detailed in the final prospectus.

7. "Controlled Company" Status and Ownership Structure

This is a critical detail for potential investors. Option Therapeutics is currently a wholly owned subsidiary of BioVie Inc., a Nevada-based company. This IPO is part of a "Separation Transaction," effectively spinning off Option Therapeutics from BioVie.

Following the IPO, BioVie Inc. intends to retain ownership of a majority of Option Therapeutics' stock. This structure designates Option Therapeutics as a 'controlled company.' For investors, this means that under NYSE rules, controlled companies receive exemptions from certain corporate governance requirements. For instance, they are not required to have a majority of independent directors on their board or a fully independent compensation committee.

Consequently, BioVie will maintain significant influence over Option Therapeutics' operations, potentially impacting strategic decisions, executive compensation, and future transactions, even after the IPO. This arrangement may limit the influence of minority shareholders.

8. Offering Details: Listing and Ticker Symbol

Option Therapeutics intends to apply for listing its common stock on the NYSE American (New York Stock Exchange American). The proposed ticker symbol will be OPTN. The company has stated that if its stock is not approved for listing on the NYSE, it will not proceed with this offering.

9. Offering Details: Shares and Price Range

Option Therapeutics plans to offer approximately 2,272,727 shares to the public in this IPO. This quantity suggests a smaller offering compared to some larger public debuts.

The initial estimated price range for these shares is set between $10.00 and $12.00 per share. Using the midpoint of this range ($11.00) and the total shares outstanding post-IPO, the company's estimated market capitalization would be approximately $125 million.

Furthermore, the underwriters, led by ThinkEquity, hold an option to purchase an additional 340,909 shares (an "over-allotment option") if there is strong investor demand, which could increase the total proceeds raised.

In summary, Option Therapeutics Inc. presents a company with significant potential and an ambitious mission, balanced by the inherent risks associated with developing cutting-cutting-edge medicines. These risks are particularly pronounced given its early stage of revenue generation and reliance on successful clinical trial outcomes. As this is a preliminary filing, details remain subject to change. Investors should conduct their own thorough research and assess whether this type of investment aligns with their personal financial objectives and risk tolerance.