Investors appear to be maintaining a bullish outlook on biopharma companies developing innovative medicines, with the BioWorld Drug Developers index currently tracking up over 5% in value so far this month heading into third-quarter earnings season.
Even though the appetite for biopharma IPOs this year has been voracious with no signs of a slowdown anytime soon, companies also have a potentially faster route to the public market using special purpose acquisition companies (SPAC) that raise money through an IPO in order to take a company public through an acquisition.
In July a major initiative of the International Federation of Pharmaceutical Manufacturers and Associations, designed to combat the rising tide of antimicrobial resistance and accelerate the pace at which new antibiotics are discovered and brought to market, was announced. The $1 billion AMR Action Fund, supported by 23 pharma companies, was created “because there was a clear realization that we have no time to spare to address the lack of innovation in this area,” said Martin Bott, interim general manager of the fund, who described the progress being made with the fund in a fireside chat at this week’s virtual BIO Investor Forum.
The appetite for biopharma IPOs this year has been voracious with no signs of a slowdown anytime soon. Year-to-date, a total of $14.63 billion was raised from 66 new global issues, a total that is already well ahead of the $10.7 billion in 2018, from 80 transactions, that represented the previous record for IPOs. In terms of volume, BioWorld has recorded that the highest number of IPOs in a single year was 84 in 2014, followed by 83 in 2000.
In a world where the traditional way of conducting business has been disrupted for about eight months and counting, no one would have faulted the biopharmaceutical sector if its operations had been placed in a slow-down mode until the COVID-19 pandemic “all clear” had been sounded. Yet, despite the restrictions faced, companies have adapted quickly to the prevailing environment.
The appetite for biopharma IPOs this year has been voracious with no signs of a slowdown anytime soon. Year-to-date, a total of $14.63 billion was raised from 66 new global issues, a total that is already well ahead of the $10.7 billion in 2018, from 80 transactions, that represented the previous record for IPOs. In terms of volume, BioWorld has recorded that the highest number of IPOs in a single year was 84 in 2014, followed by 83 in 2000.
According to BioWorld, almost $85 billion was raised by public and private biopharma companies globally in the second and third quarters alone, bringing the dollars generated to date to more than $100 billion – a total that smashes the existing record of about $69 billion that was raised in 2015.
The American Federation for Aging Research (AFAR) is involved in supporting research designed to unravel the biology of aging and expanding the field, and this week it held a webinar on the “Business of Longevity: Moving Biomedical Advances into Biotech Opportunities.” The panelists reviewed the latest research and looked at what it will take to attract more investment and biotech companies into what remains a nascent area but one that offers tremendous commercial opportunities.
There are millions of fungal species, but it appears only a few hundred of them cause serious fungal infections that are responsible for an estimated 1.5 million deaths globally each year and are equally as dangerous as bacterial and viral infections. Last week, the U.S. CDC pointed the spotlight on this situation with its Fungal Disease Awareness Week.
