Biotech IPOs signal recovery following 2-year slump, GlobalData says
06/08/2024 17:29
** Initial public offerings (IPOs) in the biotech sector,
which relies heavily on listings and venture funding, surged
six-fold in Q1 2024 from Q4 2023, according to research firm
GlobalData
** Q1 increase sets a strong pace for the year and reflects
a "pent-up" demand for biotech listings after a two-year slump,
the firm says
** Amounts raised from IPOs fell to $5.9 billion in 2022 and
$4.4 billion in 2023, compared with $30.8 billion raised in 2020
** Eight IPOs were completed in the first quarter of 2024,
raising $3.72 billion, GlobalData says
** Biotechs in Switzerland, the United States and India have
led the surge in IPO raises so far this year, with the largest
biotech IPO to date being CG Oncology CGON.O
** CGON debuted in January and raised $437 million
** "Companies with strong clinical data that previously
struggled to secure funding may now see early 2024 successes as
an opportunity to pursue public offerings," said GlobalData
analyst Ophelia Chan
** Nasdaq Biotechnology Index .NBI has gained 6% this
year, after adding 4% in 2023
** SPDR S&P 500 biotech ETF XBI.P is also up 6% YTD after
rising 8% in 2023
** XBI declined 26% in 2022, while NBI fell 11% that year
(Reporting by Bhanvi Satija in Bengaluru)
((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91
9873062788;))