Finance Watch: IPO Momentum Slows But Biopharma Stocks Get An ASCO Bump

The market for initial public offerings by biopharmaceutical companies in the US slowed considerably in May after the fast-paced first four months of 2021, which is not surprising given the fact that stock values have fallen about 2% since the end of April. Some of the decline has been recouped, however, since the American Society of Clinical Oncology released abstracts on 19 May for data being presented during the group’s 4 to 8 June meeting.

It remains to be seen whether the ASCO boost continue to increase investor enthusiasm for drug stocks. But while the Nasdaq Biotechnology Index (NBI) is down 2% this month, the NBI closed the week of 17 to 21 May up 1.2%, buoyed by positive cancer drug data from big pharma firms, including Bristol Myers Squibb Company and Roche Holding AG, and smaller companies, such as Allogene Therapeutics Inc