As the money keeps rolling in, 2020 is certainly a year for the biopharma record books. With a total of $81.26 billion raised through Aug. 6, it is a standout year in every type of financing, hitting all kinds of record highs.
With 49 completed IPOs raising $12.22 billion, the year has recorded the most money ever pulled in through biopharma debuts. Gross amounts raised through IPOs reached $8.53 billion for the first half of 2020, but throughout the month of July, the totals surpassed the highest amount raised for a single year since 2000. The second highest is $10.69 billion in 2018. A total of $8.87 billion was raised in 2019.
For this year, a total of 14 IPOs worth $3.69 billion closed in July, making it the second best month of the year, behind June’s $4.99 billion from 15 IPOs. When looking at only U.S. IPOs, there were 13 in June worth $4.82 billion and 11 in July worth $2.5 billion.
This makes June of 2020 the best single month for IPOs, be it global or U.S.-only, since BioWorld began tracking them in 2000. July of 2020 is the third largest single month total for all IPOs, but the second largest for U.S. IPOs. November of 2016 had $3.817 billion, although $3.8 billion of that amount came from IPOs on Hong Kong and Korean exchanges.
In terms of volume, the record is August of 2000 with 17. Second highest is 15 from July 2000, June 2018 and June 2020. The third highest is the 14 in July 2020.
The biggest money IPO in July was SK Biopharmaceuticals Co. Ltd.’s $799 million listing on the Korean Stock Exchange, whereas the highest U.S. IPO was Cambridge, Mass.-based Relay Therapeutics Inc.’s $460 million listing.
The 208 completed follow-on offerings so far in 2020 have raised $35.7 billion, which is more than every other year in the past 20, except for 2015, when the full-year total reached $43.6 billion. April, May, June and July are 20-year records for their respective months. In terms of volume, May, June and July also hit monthly records with 41, 42 and 32 completed follow-ons, respectively. In fact, the 42 done in June is the highest number for any month going back to 2000.
An offering of American depositary shares by Copenhagen, Denmark-based Ascendis Pharma A/S, raising $599.2 million, was the largest follow-on financing in July. The largest common stock offering during the month was completed by San Francisco-based Vir Biotechnology Inc., a COVID-19 therapeutic and vaccine developer, which raised $345 million.
For other financings of public biopharma companies (public/other), including private placements, there have been 381 completed in 2020 raising a total of $19.37 billion. Again, this is a record amount. In July, a total of $4.74 billion was raised through 51 public/other financings. Significantly, Beigene Ltd. completed the largest registered direct offering to date, raising $2.08 billion. PTC Therapeutics Inc. also pulled in $650 million through a royalty sale. Both companies are working on COVID-19 candidates. COVID-19-focused companies have themselves made a significant impact on financings within the last several months, accounting for 40% of the total.
Private venture capital financings currently sit in third place in comparison to other years, with $13.96 billion raised through 309 financings. It is just slightly behind $17.4 billion raised for all of 2018 and $16.46 billion for full-year 2019. A total of $2.04 billion was raised in July from 55 financings of private companies. San Diego-based Velosbio Inc. recorded the highest VC round in July, a $137 million series B, soon to be followed by the $135 million raised by South San Francisco-based Encoded Therapeutics Inc. through a series D.
For a complete listing of financings this year, see the following within BioWorld Snapshots:
Biopharma financings and stocks data for 2020 through August 6 can be found here: