1. Scrip
  2. >>Business
  3. >>Financing

IPO Outlook: 2021 Saw Record Numbers But Poor Returns; 2022 Looks Muted

Number Of 2021 Offerings Exceeded 2020, But Returns Faltered

 
• By Mandy Jackson

Initial public offering momentum decelerated as stock prices declined last year, but even with lower valuations making M&A more attractive, the IPO market this year is expected to be active. 

Scrip Perspectives - IPO
2022 likely will not be a third-in-a-row year of record-breaking IPO numbers • Source: Alamy

The momentum that biopharmaceutical companies gained in the eyes of investors in 2020 continued into 2021, delivering a record number of initial public offerings in the US for the second year in a row. However, biotechnology stock prices declined during the latter half of 2021, and by the end of December the average return for companies that went public in 2021 was -25.3%. Even so, experts expect a strong market for IPOs in 2022, but not enough offerings for a third record-breaking year.

The good news about declining valuations, however, is that mergers and acquisitions may become more attractive strategic alternatives for drug...

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on Scrip for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required
Start Free Trial

Already a subscriber?

More from Financing

Chinese Biotech VC/PE Fundings Rise But Still Modest

 
• By Dexter Jie Yan

LTZ Therapeutics and Beijing Sungen Biomedical are among the Chinese biotechs raising new funding, of around $40m each, based on their clinical assets with novel mechanisms of action. While fundings have risen, they remain moderate however.

Finance Watch: Vera Raises Debt, Taysha And Trevi Price Offering After Big Trial Wins

 
• By Mandy Jackson

Public Company Edition: Public company funding in 2025 is down from 2024, but after recent positive data readouts Vera accessed up to $450m in new debt, while Taysha and Trevi grossed $200m and $100m, respectively, in stock offerings. Meanwhile, Keros, Stealth and others cut jobs.

Finance Watch: Is Six The Magic Number? May Sees Half Dozen VC Mega-Rounds

 
• By Mandy Jackson

Private Company Edition: Six biopharma companies raised venture capital rounds totaling $100m or more in May, matching the number of mega-rounds in April and March. Among other recent financings, Syndeio launched with $90m and SpyGlass raised a $75m series D round.

Angelini Advances Brain Health Ambitions With GRIN Pact

 
• By Kevin Grogan

The Italian drugmaker gets rights to Phase III-ready asset radiprodil.

More from Business

Sanofi Cements RSV Dominance As Merck & Co. Rival Awaits FDA D-Day

 
• By Kevin Grogan

The French company will start shipping its blockbuster shortly to meet expected strong demand in the 2025–26 RSV season.

Quick Listen: Scrip’s Five Must-Know Things

 
• By Ian Haydock

In this week's episode: Sanofi’s Blueprint buy; AstraZeneca’s breast cancer resistance results at ASCO; BMS and BioNTech’s big bispecific deal; Kymera’s Dupixent in a pill; and Degron’s CEO on pipeline and strategy.

Chinese Biotech VC/PE Fundings Rise But Still Modest

 
• By Dexter Jie Yan

LTZ Therapeutics and Beijing Sungen Biomedical are among the Chinese biotechs raising new funding, of around $40m each, based on their clinical assets with novel mechanisms of action. While fundings have risen, they remain moderate however.