LB Pharmaceuticals Added to the Russell 2000® and Russell 3000® Indices

Rhea-AI Summary

LB Pharmaceuticals (Nasdaq: LBRX) announced it will be added to the Russell 2000 and Russell 3000 indices, effective at the open of U.S. markets on December 22, 2025, as part of the 2025 Russell reconstitution. The company said this follows its recent IPO and comes as it is approaching initiation of key clinical trials for LB-102 in schizophrenia and bipolar depression. The Russell reconstitution ranks the 4,000 largest U.S. stocks by market capitalization as of April 30. The release notes about $10.6 trillion benchmarked to Russell US indexes (June 2024) and $18.1 trillion benchmarked to FTSE Russell indexes.

Positive

• Included in Russell 2000 and Russell 3000 effective Dec 22, 2025
• Inclusion follows company's recent initial public offering
• Approaching initiation of LB-102 clinical trials in two indications
• Russell US indexes benchmark about $10.6 trillion (June 2024)
• FTSE Russell indexes benchmark about $18.1 trillion

Negative

• None.

Key Figures

Index inclusion date December 22, 2025 Effective date for Russell 2000 and 3000 inclusion

Russell US coverage 4,000 stocks Number of largest US stocks captured at reconstitution

Russell benchmarked assets $10.6 trillion Assets benchmarked to Russell US indexes as of June 2024

FTSE Russell benchmarked assets $18.1 trillion Assets benchmarked to FTSE Russell indexes

Global coverage 70+ countries Markets and asset classes covered by FTSE Russell indexes

Investable market coverage 98% Share of investable market covered by FTSE Russell indexes

Membership duration 1 year Russell 3000 membership period after reconstitution

Reconstitution reference date April 30 Date for ranking US stocks by market cap

Market Reality Check

$21.36 Last Close

Volume Volume 411,785 is 2.6x the 20-day average of 158,642, indicating elevated activity ahead of index inclusion. high

Technical Price $22.50 is trading above the 200-day MA of $16.20 and sits 2.81% below the 52-week high of $23.15.

Peers on Argus

LBRX gained 15.38% while peers showed mixed moves (e.g., ABEO +0.79%, ASMB -0.73%, RCKT +3.24%), pointing to a stock-specific reaction to the Russell index inclusion rather than a broad biotech move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 24	Conference presentation	Neutral	+5.3%	Announcement of CEO presentation at a major healthcare investor conference.
Nov 12	Inducement grant	Neutral	-5.6%	Equity option grant to new regulatory affairs executive under Nasdaq inducement rule.
Nov 12	Executive hire	Positive	-5.6%	Appointment of experienced Chief Commercial Officer to support LB‑102 commercialization.
Nov 06	Conference presentation	Neutral	-1.0%	Planned CEO presentation at the Stifel 2025 Healthcare Conference for investor outreach.
Nov 06	Earnings and pipeline	Positive	-4.3%	Q3 2025 IPO proceeds, strong cash of <b>$314.5M</b>, and LB‑102 Phase 2/3 plans.

Pattern Detected

Across the last five news events, LBRX often showed negative price reactions, including to seemingly positive corporate and financial updates, indicating a pattern of divergence between news tone and short-term price moves.

Recent Company History

Over the past few months, LBRX has transitioned from its upsized IPO and strong cash position to active investor outreach and team build-out. The Q3 2025 results highlighted an IPO raising $327.8M gross and cash and securities of $314.5M, alongside advancing LB‑102 into late-stage trials. Subsequent filings detailed management appointments, lease expansion, and conference presentations. Despite these steps, prior announcements often saw negative or muted price reactions, contrasting with today’s index inclusion-driven strength.

Market Pulse Summary

This announcement highlights LBRX’s upcoming inclusion in the Russell 2000 and 3000 indexes effective December 22, 2025, potentially increasing visibility with institutions tracking the 4,000 largest US stocks. It comes after an upsized IPO and plans to advance LB‑102 into late-stage trials. Investors may watch how index-linked ownership evolves, progress of schizophrenia and bipolar depression studies, and whether subsequent corporate updates shift the stock’s pattern of reacting divergently to news.

Key Terms

Russell 2000 financial

"included in the Russell 2000® Index and the broad-market Russell 3000® Index"

An index that tracks the performance of roughly 2,000 smaller publicly traded U.S. companies, ranked by their size measured in market value. Investors use it like a thermometer for the small‑company segment of the stock market: it shows how that part of the market is doing, serves as a common benchmark for small‑cap funds, and helps gauge risk appetite and economic trends that often affect smaller businesses more than large ones.

Russell 3000 financial

"included in the Russell 2000® Index and the broad-market Russell 3000® Index"

A broad stock-market index made up of the roughly 3,000 largest publicly traded U.S. companies, ranked by their total market value. It serves as a wide “basket” of American stocks that reflects the overall performance of the U.S. equity market, so investors use it as a benchmark or to gain broad exposure through index funds and ETFs—similar to watching an economy-sized shopping cart to judge how an entire store is doing.

Russell 1000 financial

"means automatic inclusion in the large-cap Russell 1000® Index or small-cap Russell 2000® Index"

The Russell 1000 is a stock market index made up of the 1,000 largest U.S. companies by market value, providing a broad view of how major American firms are performing. Think of it as a single, tracked basket or scoreboard of big-cap stocks; investors use it as a benchmark to compare fund performance, to gauge overall market health, and to build index funds or ETFs that let them own a wide slice of large U.S. companies in one trade.

index funds financial

"used by investment managers and institutional investors for index funds and as benchmarks"

A fund that pools investors’ money to buy the same collection of stocks or bonds that make up a market index — like a ready-made basket representing the whole market or a specific slice of it. It matters because it gives broad exposure with lower fees and simpler management than picking individual securities, reducing the impact of any single holding and making it efficient for long-term investing.

ETF financial

"asset owners, asset managers, ETF providers and investment banks choose FTSE Russell indexes"

An ETF, or exchange-traded fund, is like a basket of different investments such as stocks or bonds that you can buy or sell easily on the stock market, just like a regular share. It allows people to invest in many companies at once, making it a simple way to grow savings without picking individual stocks.

structured products financial

"used to benchmark performance and create ETFs, structured products and index-based derivatives"

Structured products are custom-made investment packages that combine familiar assets (like stocks or bonds) with contracts whose payouts depend on specific market outcomes, creating a tailored payoff profile — for example extra upside if an index rises or partial protection if it falls. They matter to investors because they can offer bespoke risk-return tradeoffs or capital protection, but carry issuer credit risk, added fees and complexity, and can be hard to value or sell quickly.

index-based derivatives financial

"create ETFs, structured products and index-based derivatives"

Index-based derivatives are financial contracts whose value is tied to a market index (a single number that tracks many stocks, bonds, or commodities), so you gain or lose based on the index’s movement rather than any one company. They matter to investors because they provide a quick, often cheaper way to bet on or protect against broad market moves—like placing a single wager on a yardstick that measures the whole market—offering exposure, hedging or leverage without buying every underlying asset.

IOSCO Principles regulatory

"focused on index innovation and customer partnerships as it seeks to enhance... and embraces the IOSCO Principles"

The IOSCO principles are a set of international standards created by securities regulators to guide fair, transparent, and well-governed capital markets. Think of them as rule-of-thumb blueprints that help ensure companies disclose clear information, prevent market abuse, and let investors buy and sell with confidence; investors care because stronger, consistent rules reduce surprise risks and make it easier to compare opportunities across countries.

AI-generated analysis. Not financial advice.

NEW YORK, Dec. 09, 2025 (GLOBE NEWSWIRE) -- LB Pharmaceuticals Inc (“LB Pharmaceuticals” or the “Company”) (Nasdaq: LBRX) today announced the Company has been included in the Russell 2000^® Index and the broad-market Russell 3000^® Index, effective at the open of U.S. equity markets on December 22, 2025, as part of the 2025 Russell indexes reconstitution.

“Inclusion in the Russell 2000 and Russell 3000 indices represents an important milestone following our recent initial public offering,” said Heather Turner, Chief Executive Officer. “We are approaching initiation of key clinical trials of LB-102 in both schizophrenia and bipolar depression, a period of significant momentum for the Company. We expect this recognition to broaden investor awareness of LB Pharmaceuticals.”

The annual reconstitution of the Russell US indexes captures the 4,000 largest US stocks as of April 30, ranking them by total market capitalization. Membership in the Russell 3000^® Index, which remains in place for one year, means automatic inclusion in the large-cap Russell 1000^® Index or small-cap Russell 2000^® Index as well as the appropriate growth and value style indexes. FTSE Russell determines membership for its Russell indexes primarily by objective, market-capitalization rankings and style attributes.

Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. According to data as of the end of June 2024, about $10.6 trillion in assets are benchmarked against the Russell US indexes, which belong to FTSE Russell, the global index provider.

About FTSE Russell, an LSEG Business

FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally. FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $18.1 trillion is benchmarked to FTSE Russell indexes. Leading asset owners, asset managers, ETF providers and investment banks choose FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives. A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance and embraces the IOSCO Principles. FTSE Russell is also focused on index innovation and customer partnerships as it seeks to enhance the breadth, depth and reach of its offering. 

FTSE Russell is wholly owned by London Stock Exchange Group. 

For more information, visit FTSE Russell.

About LB Pharmaceuticals

LB Pharmaceuticals is a clinical-stage biopharmaceutical company developing novel therapies for the treatment of schizophrenia, bipolar depression, and other neuropsychiatric diseases. The Company is building a pipeline that leverages the broad therapeutic potential of its lead product candidate, LB-102, which the Company believes has the potential to be the first benzamide antipsychotic drug approved for neuropsychiatric disorders in the United States. LB-102, if approved, has the potential to become a mainstay of psychiatric practice by offering a potentially attractive alternative to branded and generic therapeutics for the treatment of schizophrenia, bipolar depression, and other neuropsychiatric diseases.

Cautionary Note Regarding Forward-Looking Statements
Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Words such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “design,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “positioned,” “potential,” “predict,” “seek,” “should,” “target,” “will,” “would” or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical facts contained in this press release are forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning the expected clinical development and regulatory pathway and therapeutic benefits of LB-102 and continuing advancement of LB-102 and the Company’s portfolio. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among others: the Company’s limited operating history and historical losses; the Company’s ability to raise additional funding to complete the development and any commercialization of LB-102; the Company’s dependence on the success of its lead product candidate, LB-102; the Company’s ability to obtain regulatory approval of and successfully commercialize its product candidate; the early stages of clinical development of the Company’s lead product candidate, LB-102; any undesirable side effects or other properties of the Company’s product candidate; that the Company may be delayed in initiating, enrolling or completing any clinical trials; competition from third parties that are developing products for similar uses; the Company’s ability to obtain, maintain and protect its intellectual property; and the Company’s dependence on third parties in connection with manufacturing, clinical trials and preclinical studies.
These and other risks are described more fully in the section titled “Risk Factors” in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 and its other documents to be subsequently filed with or furnished to the Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made. Except to the extent required by law, the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

Contacts
Media: 
Michael Tattory
LifeSci Communications
Mtattory@lifescicomms.com

Investor Relations: 
Joyce Allaire 
LifeSci Advisors 
JAllaire@LifeSciAdvisors.com

FAQ

When will LB Pharmaceuticals (LBRX) be added to the Russell 2000 and Russell 3000 indices?

LB Pharmaceuticals will be added at the open of U.S. markets on December 22, 2025.

What does LBRX inclusion in the Russell 2000/3000 mean for shareholders?

Inclusion may broaden investor awareness and eligibility for index-tracking funds that follow the Russell 2000/3000.

How is Russell index membership determined for LBRX?

Membership is based on objective market-capitalization rankings of the 4,000 largest U.S. stocks as of April 30 during the annual reconstitution.

Will LBRX remain in the Russell indexes permanently?

No; membership from the reconstitution remains in place for one year and is reviewed at each annual reconstitution.

Does the announcement mention LB Pharmaceuticals' clinical program status for LB-102?

Yes; the company said it is approaching initiation of key clinical trials of LB-102 in schizophrenia and bipolar depression.

How large are assets benchmarked to the Russell and FTSE Russell indexes cited in the announcement?

The release cites about $10.6 trillion benchmarked to Russell US indexes (June 2024) and about $18.1 trillion benchmarked to FTSE Russell indexes.