After a record run, fewer biotechs are going public. Here's how they're performing.
Thursday, April 21, 2022
Source: BIOPHARMADIVE
Initial public offerings are the lifeblood of the biotech industry. Stock listings give young companies access to the vast amount of cash necessary to advance their drugs through clinical development, and their venture backers a crucial opportunity to earn a return and form new biotechs.
At the start of the last decade, the IPO markets weren't receptive to biotech companies. But by 2013, public investment was pouring into the industry, drawn by scientific advances and boosted by the newfound interest of a broader range of investors.
Biotechs and their backers reaped the rewards for nearly 10 years, as more young drugmakers than ever went public at valuations many times what was typical in the 2000s. In 2021, despite industry disruption from the COVID-19 pandemic, more than 100 biotechs priced an IPO, raising nearly $15 billion in funds.
That momentum has come quickly to a halt, however. Stock prices of newly public companies plummeted in late 2021 amid a sector-wide downturn, weakening interest in biotech offerings. The pace of IPOs stalled, leaving emerging biotechs with a tougher road to the public markets.
Which biotechs make it to Wall Street? Which biotechs create value, and which fail? What types of companies are generating the best returns? Who are their top investors?
Biopharma Dive is tracking these details in the database below, which will be updated regularly. Click on a company to pull up more information, and scroll to the bottom of the page to read how this information was collected and organized. If there's anything we've missed, or any additional information you'd like to see, please reach out and let us know.