Biotech IPO slump seen dragging into 2026 as returns disappoint
Briefly

The biotechnology sector is struggling to attract investment, with only five noteworthy IPOs this year, reflecting a severe decline since the pandemic peak. After 150 biopharma IPOs in two years, the market is now characterized by hesitation and poor stock performance. A recent IPO by Aardvark Therapeutics Inc. exemplifies this trend, as its shares plummet post-listing. Various external factors, including administrative policies and vaccine skepticism, contribute to the industry's challenging landscape, with most recent IPOs trading below their listing prices, leading to a broader investor retreat.
Since the start of last year, all but four biotech companies that raised over $50 million in IPOs are trading below their listing prices, reflecting investor skepticism.
Current market conditions, including a declining Nasdaq Biotechnology Index and stalled investor returns, indicate a challenging environment for biotech IPOs compared to previous years.
Read at www.mercurynews.com
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