Few Signs Of An IPO Slowdown Despite US Biotech Stock Slump

There is no question that the market for biopharmaceutical company initial public offerings in the US is booming, but it remains to be seen if a major drop in biotechnology stock values in October will slow the momentum, especially since the average IPO return is approaching zero.

Of the 61 biopharma firms that launched IPOs in 2018 through the end of October, 33 provided negative returns and 28 were trading flat or in the black, for an average return of 0.3% as of October 31 versus an average of 13.6% for the 54 drug developers that went public in the US through the end of September. (Also see "IPO Update: Returns Sag As Seven More Biopharmas Go Public In September" - Scrip, 2 October, 2018