The initial public offerings (IPOs) in the biopharmaceutical sector surged 68.4 per cent to reach $8.52 billion globally in 2024, according to a new report.
The sector saw an upturn in 2024, with 50 completed IPOs raising $8.52 billion, from $5.06 billion raised in 2023 and marking the highest total IPO value raised since 2021.
This rebound, driven by US Federal Reserve interest rate cuts, marks the highest total since 2021, said GlobalData, a leading data and analytics company.
While cautious, investors are showing increased interest in companies with strong clinical data, signalling a recovery in the public markets and a shift toward more advanced-stage biopharmaceuticals.
Completed IPOs that raised more than $100 million almost doubled, from $4.39 billion across 15 IPOs in 2023 to $7.88 billion across 24 IPOs in 2024.
The increase in the number of high-value IPOs in 2024 suggests that while public investors remain selective, increased capital availability due to interest rate cuts has facilitated investments in biopharmaceutical companies with a strong value proposition, said Alison Labya, business fundamentals analyst at GlobalData.