Half of 2016 Biotech IPOs Positive At Mid-Year; 2015 Success Rate Sours

It hasn't been easy for biopharmaceutical firms to go public in the US during 2016, but as of the end of June the scrutiny seems to be paying off – at least for investors in half of this year's first-half initial public offerings.

Eighteen therapeutics developers launched IPO in 2016, raising $1.2bn in total net proceeds and generating an average return of 10.8% as of June 30. Nine of the companies produced a positive return at mid-year and nine had a negative return versus their IPO stock price. But with only 18 IPOs so far in 2016 versus 34 biopharma first-time offerings at the mid-point of 2015, which raised a total of $2.9bn in net proceeds, investors clearly are responding to the now poor performance of companies that went public last year.

Comparing like with like, therapeutics firms that launched IPOs between January and June of 2015 had an average return of...