‘The Silver Lining’: Biotech IPOs in The Time of Coronavirus

The COVID-19 pandemic has upended the public markets, leading to a “disastrous” first quarter and “throwing a wrench” in what Renaissance Capital once expected to be the most productive IPO season of the year. But every cloud has a silver lining and experts agree that in this case, it’s the biotech industry.

“The biotech market is unique for a few factors, one of them being the long-term nature of investors who support these fields,” Jordan Saxe, head of healthcare listings at Nasdaq, told FierceBiotech. “They’re not focused on a quarter-to-quarter metric; they’re looking at an average milestone readout that is at least 12 months from the IPO.”

The drug development cycle is long, and companies need to continue raising capital to bankroll their pipelines. That includes tapping the public markets not just for IPO proceeds but for follow-on offerings to keep funding the next stage of development, Saxe said.

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