Biopharma IPO activity was still quiet through the second quarter 2023 with 3 companies going public on global exchanges for a total of $800 million. This follows 3 IPOs in the first quarter at $400 million. Among these IPOs, Laekna raised approximately $101 million focusing on innovative cancer and liver fibrosis immune therapies. Cutia Therapeutics secured $65 million to advance their leading product for adipose accumulation treatment, and ACELYRIN closed a sizeable IPO on Nasdaq raising $621 million to accelerate transformative medicines in immunology. There are still IPOs happening in the biopharmaceutical sector, just not at the pace we got used to from 2017 to 2021.
The therapeutic platforms and biopharma sector saw steady follow-on activity with significant amounts raised. In 2021, Q1 saw an impressive 175 follow-ons, accumulating $15.6 billion. However, follow-ons declined in the subsequent quarters: Q2 had 75 follow-ons raising $7.8 billion; Q3 had 60 follow-ons accumulating $5.8 billion; and Q4 had 68 follow-ons raising $10.6 billion.
Follow-on activity was back in 2022, with 26 follow-ons raising $3.1 billion in Q1 and 58 follow-ons accumulating $4.3 billion in Q2. This trend continued in Q3 and Q4 of 2022, with 68 follow-ons raising $7.7 billion each quarter. As we entered 2023, follow-on activity remained consistent, with 51 follow-ons raising $6.3 billion in Q1 and 60 follow-ons raising $6.1 billion in Q2.
Overall, the cumulative follow-on activity since 2021 in the therapeutic platforms and biopharma sector amounted to 708 follow-ons, raising a substantial total of $75.1 billion. These figures highlight enduring and consistent investor support in the sector, providing additional funding to established companies and fuelling continued growth and development in therapeutic platforms and biopharmaceuticals.
Exploring IPO Trends: Biopharma Therapeutics & Platform vs Other Life Sciences
The healthcare and life sciences sector saw substantial IPO activity for companies raising $15 million or more, categorized by subsector. The data here excludes terminated IPOs and SPAC IPOs, and the charts are based on completed IPO dates. During 2022, the biopharma therapeutics and platforms subsector raised $1.5 billion in Q1, $0.4 billion in Q2, $0.6 billion in Q3, and $0.3 billion in Q4 through IPOs. In the same period, the Medtech, devices, digital health therapeutics, and wearables subsector had no IPOs. However, the subsector’s diagnostics, sequencing, ‘omics, and research tools saw no IPOs in Q1, Q2 & Q4 and only $1.7 billion in Q3. The other healthcare/life sciences category had IPO totals of only in Q2 of $0.8 billion.
Moving into 2023, the IPO totals for the biopharma therapeutics and platforms subsector were $0.2 billion in Q1 and $0.2 billion in Q2. The Medtech, devices, digital health therapeutics, and wearables subsector still had no IPOs, and the diagnostics, sequencing, omics, and research tools subsector remained IPO-less. However, the other healthcare/life sciences category had IPO totals of $0.2 billion in Q1 and $5.0 billion in Q2 from the public consumer healthcare spin off of Kenvue from J&J.
In total, across all subsectors, the IPO activity in the healthcare and life sciences sector for companies raising $15 million or more amounted to $3.1 billion in the biopharma therapeutics and platforms subsector, $0.1 billion in the Medtech, devices, digital health therapeutics, and wearables subsector, $1.7 billion in the diagnostics, sequencing, ‘omics, and research tools subsector, and $6.0 billion in the other healthcare/life sciences category. The total IPO funds raised in the healthcare and life sciences sector reached $10.8 billion.
Quarterly Snapshot: IPO Activity Deals In Biopharma Therapeutics And Platforms
- ACELRYIN (Nasdaq: SLRN), a late-stage clinical biopharmaceutical company focused on advancing transformative medicines in immunology, successfully closed its upsized IPO of 34,500,000 common shares, including the entire exercise of the underwriters’ option, at a public price of $18.00 per share. The total gross proceeds from the offering were $621 million. Trading of the shares commenced on May 5, 2023.
- On June 12, Cutia Therapeutics Ltd. successfully secured HK$465 million (equivalent to $65 million) through its Hong Kong IPO. Nearly half of the funds raised will be allocated to advancing the development of its leading product to treat adipose accumulation. On the first day of trading, Cutia’s shares experienced a modest increase, opening at HK$21.80, showing a 0.46% rise, and closing at HK$21.95. Cutia Therapeutics is a research and development-focused biopharmaceutical company specializing in dermatology.
- Harneys advised Laekna on its HK$790 million (approximately $101 million) Hong Kong IPO. Laekna was founded in 2016 and is focused on innovative immunology therapies for cancer and liver fibrosis. The IPO funds will advance the clinical development of its core products, LAE001 and LAE002 licensed from Novartis and previously trialed with GSK. The company’s shares began trading on June 29, 2023.