Mergers with special purpose acquisition corporations (SPACs) have become lucrative financial transactions for biopharmaceutical firms because they can raise significant capital and become publicly traded companies in a single transaction, bypassing the traditional initial public offering path. But without near-term milestone achievements or a high-profile management team, many drug developers that have gone public since the start of 2020 have not traded well in the US stock market to date.
SPAC Mergers Take Biopharmas Public, But Valuations Often Sag Post-Closing
Deals Give Stock Market Access Without IPO
Merging with a special purpose acquisition corporation is a viable funding tool, but it may not be the best choice for drug developers far from key milestones.
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