IPO FEVER GRIPS BIOTECH INDUSTRY

After two tumultuous years marred by geopolitical tensions and recession, the biotech sector IPOs (initial public offering) is showing signs of recovery. Experts are hopeful that this year will revive the public equity markets for biotech companies. Twelve biotech companies have gone public this year, raising a total of nearly $1.5 billion, compared to a total of only nineteen biotech companies, throughout 2023. Are biotech IPOs poised for an upswing? Is the worst finally over for biotech IPOs? Let's find out.

- Ayesha Siddiqui

After the highs of COVID-19-led to bumper years for biotech and pharma IPOs in 2020 and 2021, there was a steep drop in 2022, followed by a further decline in 2023. Between 2021 and 2023, the biotech IPO market experienced a notable decline as investors grew increasingly cautious due to the uncertainties surrounding the pandemic and economic downturn. According to the Nasdaq Biotechnology Index (NBI), only 21 biotech IPOs were recorded in 2022, a significant decrease compared to the 104 biotech IPOs observed in 2021. Another report highlights that just 38 life science companies went public between 2022 and 2023, compared to 179 across 2020-2021, according to data from Silicon Valley Bank. That's the lowest in a two-year period since 2011-2012.