The IPO Party Is Over – How Bad Is The Hangover?

Over 100 biopharma companies piled onto public markets in 2021, raising a combined $21bn. A sharp cool off has left many trading well below their listing price. What does it mean for biotech financing in 2022?

party aftermath
• Source: Alamy

Public biotech stocks are suffering after the excesses of 2020 and 2021. Some see a welcome correction, others an indiscriminate blood bath. Biotech’s coffers are stuffed with cash, cushioning the impact of the market downturn – for now. M&A is expected to provide another safety net, with an estimated $500bn of strategic firepower waiting to be deployed as prices return to Earth.

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