Several young drug developers managed to float in the first quarter, but new issues dried up in March when coronavirus infected the markets. Is the game back on?
The device sector enjoyed a mid-year IPO bonanza, but after getting away the class of 2019 had a torrid time.
A stock market rebound created a strong finish for biopharma flotations in 2019, with four $100m-plus floats, led by Phathom Pharmaceuticals.
A big valuation at float is no guarantee of ongoing investor support, as a look at the sector’s biggest IPOs reveals.
Only seven drug developers managed to float on Western exchanges in the third quarter, and new issues in October have struggled, with Biontech the latest example.
Biontech and ADC Therapeutics are both heading towards substantial flotations, but it is hard to find evidence that bigger does better.
Most medtechs that listed this year priced their IPOs at a premium, and most saw their shares appreciate.
After a quiet first quarter demand for new issues has returned to levels seen in 2018, itself a record year for IPOs of young drug developers.
Biopharma IPOs dipped in the opening months of 2019, but numbers look fairly healthy despite January's US government closure.