The biotech IPO market has been scorching for the previous few years, but it surely set all kinds of latest data in 2021. A complete of 399 corporations priced IPOs in 2021, elevating $142.5 billion, in line with IPO analysis agency Renaissance Capital. These figures made this yr the busiest by deal rely since 2000, and the largest ever when it comes to proceeds raised.
Healthcare, which incorporates biotech, was the busiest sector, accounting for 36% of the IPO exercise, Renaissance mentioned in its 2021 annual evaluate. The most important biotech IPO of the yr belongs to Seattle cell remedy developer Sana Biotechnology, which was in a position to upsize an IPO that raised $588 million.
Whereas Sana’s IPO whole is eye-catching, the sum can be notable as a result of it’s the biggest ever IPO for an organization that has but to achieve the clinic. Not so way back, biotech corporations usually waited till they’d medical information earlier than turning to the general public markets. Even early dosing information reduces the funding dangers.
Sana nonetheless doesn’t have medical information. What it does have is a cell and gene remedy know-how and management from two former Juno Therapeutics executives who steered that firm to a $9 billion acquisition by Celgene in 2018. Sana mentioned it’s making ready to file a number of investigational new drug purposes in 2022 and 2023. Meaning buyers should wait one other yr or extra earlier than the corporate produces information that might transfer the corporate’s inventory worth.
Different cell remedy builders that went public this yr embody Lyell Immunopharma, Caribou Biosciences, Instil Bio, Talaris Therapeutics, and Achilles Therapeutics. A lot of the biotechs on this group had reached a minimum of early medical testing on the time of their IPOs.
Recursion Prescription drugs had the second largest biotech IPO of 2021. The Salt Lake Metropolis, Utah-based firm raised $436.4 million to proceed medical improvement of drug candidates found by its AI platform. Just like Recursion, Exscientia has an AI-based drug discovery platform that it makes use of to develop drug candidates for companions in addition to its inside pipeline. The Oxford, U.Okay.-based firm raised $304.7 million from its IPO. Absci, which makes use of its AI platform to supply proteins that change into drug candidates for its pharmaceutical trade companions, raised $200 million in its inventory market debut.
In line with Renaissance, IPO filings elevated for the third straight yr; the 495 IPOs that had been filed in 2021 by means of Dec. 20 is a greater than 94% enhance in comparison with the identical interval final yr. The $142.5 billion raised is an 82.2% enhance over final yr’s whole.
The yr was additionally marked by a surge in corporations going public by merging with particular objective acquisition corporations (SPACs). Renaissance counted almost 200 corporations such offers. Biotech corporations that went public in 2021 through SPAC offers embody Nautilus Bio, Humacyte, Ginkgo Bioworks, and Pardes Biosciences.
As we head into a brand new yr, the new IPO market seems to be cooling off. Whereas the market received’t flip fully chilly this winter, Renaissance doesn’t suppose buyers ought to count on a repeat of 2021’s IPO exercise.
“Wanting ahead, we imagine the 2022 IPO market could have a gradual begin and fail to match the previous yr’s document tempo, however ample IPO candidates are able to take the leap as soon as situations enhance,” the agency mentioned.
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