IPO Update: Gottlieb’s Resignation Pulls Down Five Of Eight Newly Public Biopharmas

The US market for initial public offerings by biopharma companies in 2019 got off to a slow start in January, but eight drug developers went public in February. However, following the news that US FDA Commissioner Scott Gottlieb is resigning, only three of the firms are trading above their IPO values.

The US government shutdown kept the Securities and Exchange Commission (SEC) from processing IPO filings at the start of this year, but companies quickly launched offerings once the SEC reopened, bringing in $845.8m and counting. But while six of the eight biopharma firms were generating a positive return for IPO investors as recently as March 4, Gottlieb's resignation hit biotechnology stocks hard. As a result, five of the newly public drug developers are trading in the red as of March 7