IPO Update: 35 Biopharmas Provide -6.1% Average Return; New Offerings Feel Stock Market Impact

Biopharmaceutical innovation continues to try and meet patient needs regardless of whether stock prices are up or down, which is a good thing since most drug developers that went public in the US during the first three quarters of 2019 – raising a total of $4.53bn – are trading in negative territory. With initial public offering performance souring, and with the stock market in decline due to US trade war concerns, a pair of firms that were expected to be among the first biopharma IPOs of the fourth quarter postponed their offerings.

The average return for the 35 companies that completed IPOs through the end of September was -6.1% with 16 firms trading above their IPO prices and 19 firms trading below as of 30 September (see table below). Nonetheless, drug developers continue to file paperwork with the US Securities and Exchange Commission (SEC) in support of future offerings to fund clinical trials across a wide variety of diseases