IPO Update: High-Flying Biopharma IPOs Average 77.1% Return Through Q2
BY MANDY JACKSON Executive Summary The performance of 29 biopharma firms that launched IPOs during the first half of 2020 is staggering compared with 28 drug developers that went public in the first half of 2019 with a 10% average return.
20 / September 2020
The market for initial public offerings by biopharmaceutical firms during the second quarter of 2020 was exceptional in many ways, including the remarkable rebound in June when 14 companies went public in the US after the COVID-19 pandemic closed the IPO window in March. Despite the ongoing uncertainty related to the novel coronavirus, 28 drug developers and a buyer of pharmaceutical royalties went public during the first half of 2020 and generated an average return of 77.1%. While the first half of 2019 was a fairly healthy quarter for biopharma IPOs, the performance of companies that went public during the first half of this year is staggering in comparison. And despite the unknowns surrounding COVID-19 – including whether the US will be able to reverse the recent rise in cases while other countries see their numbers fall – Renaissance Capital expects the good times to continue.
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