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.
IPO Outlook: 2021 Saw Record Numbers But Poor Returns; 2022 Looks Muted
Number Of 2021 Offerings Exceeded 2020, But Returns Faltered
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.
More from Financing
• By
Public Company Edition: Stock valuations are falling due to political, economic and regulatory uncertainty, resulting in fewer large public offerings, more alternative financings and cost cuts. Carisma, Tenaya, BioAtla, Arbutus, Nkarta, Alector and Adaptimmune announced layoffs.
• By
CEO Kris Elverum told Scrip about the start-up’s platform for editing RNA to correct genetic variants that cause harm and to reproduce healthy variants as a means of treating disease.
• By
The four-year-old firm said it plans to advance programs toward the clinic from the funding round, which comes just over a year after signing two major pharma partnerships.
• By
Private Company Edition: The latest group of drug developers to announce venture capital financings is remarkable for its geographic diversity, from Character Biosciences’ $93m series B round in the US to Augustine’s $85m series B in Belgium to a $29.2m series C for Aculys in Japan.
More from Business
• By
Public Company Edition: Stock valuations are falling due to political, economic and regulatory uncertainty, resulting in fewer large public offerings, more alternative financings and cost cuts. Carisma, Tenaya, BioAtla, Arbutus, Nkarta, Alector and Adaptimmune announced layoffs.
• By
The US FDA approved anti-CD19 antibody Uplizna, from Amgen’s $27.8bn purchase of Horizon in 2023, for IgG4-related disease – a larger market than its original NMOSD indication.
• By
BeiGene’s Phase III ociperlimab joins the list of failed TIGIT inhibitors, as candidates from Roche, Merck & Co. and others have failed late-stage studies.