Despite a large amount of uncertainty, biotechs aiming to go public are pressing forward, with four new filings so far in 2019.
The companies aim to raise a combined $422 million by entering the public markets, their filings show.
Going into 2019, some healthcare experts had expected a slowdown as the IPO markets have started to look more uncertain because of a volatile stock market.
The biotech initial public offering slowdown that some on Wall Street were expecting this year hasn’t happened yet.
Going into 2019, some investing experts had expected a slowdown as the IPO market started to look more uncertain amid a tumultuous public market. The government shutdown has added additional challenges.
Companies in 2018 raised more than $6.3 billion in 58 deals, according to Renaissance Capital. It was the highest number of initial public offerings in a year since 2014, when there were 71 biotech IPOs that raised a combined $5.2 billion.
Through the first few days of 2019, a number of biotechs laid out their plans to go public in the coming months.
Read more: Companies hunting for new ways to tackle cancer and Alzheimer’s raised $6.3 billion going public in 2018 — here are the 10 biggest deals of the year
“It’s going to be really interesting to see what the pricing action is on those IPOs,” Steve Elms, managing partner of venture-capital firm Aisling Capital, told Business Insider in early January.
If you “look over the last couple of years, a lot of very early stage companies went public,” Elms said. “I don’t know that pre-clinical companies are going to be able to continue going public in this kind of treacherous market.”
Going forward with IPOs, however, has been made more difficult by the ongoing partial government shutdown, the longest …read more
Source:: Business Insider