The public markets have hammered biopharma companies conducting IPOs in the past four years, with the number of debuts dwindling and the amounts raised falling dramatically as well. But one of the more telling measures is price performance, which is significantly down for all IPOs completed since 2020. The stock prices of 13 firms that entered the U.S. markets in 2023 are currently at a decline of 26.8% on average, with only two companies trading above their offering price.

While biopharma dealmaking remains active, a strong third quarter (Q3) was not enough to bring it to the same level seen during each of the last three years, although values are coming close. At the same time, M&As appear to be rising above 2022, but even with the increase, they still lag behind other years. If the Pfizer Inc./Seagen Inc. merger, worth $43 billion, closes before the end of 2023, for example, M&As will still not come close to the overall value seen in 2019 and 2020.

Out of the 30 companies comprising BioWorld’s Drug Developers Index (BDDI), 22 stocks saw a decrease in their stock prices in September, while two remained stable, and six showed positive gains. At the end of the third quarter, 80% of companies on BDDI experienced a decline in their stock values, with only six recording an increase.

The first three quarters of 2023 delivered a mix of approval news, with an uptick in U.S. FDA clearances over the previous year, but still tracking lower than 2017-2021. Global approvals are on a different trajectory, down year over year.