During the fourth quarter of 2023, the biopharmaceutical sector witnessed a decline in deal activity, primarily credited to a significant reduction in IPOs, underlining the limited IPO opportunities throughout the year. Despite fewer overall deals, emphasizing later-stage dealmaking resulted in higher-value exchanges. Noteworthy IPOs during this period included Cargo Therapeutics’ $281 million IPO on NASDAQ, Acelyrin’s $621 million raise on NASDAQ, WuXi XDC’s $4.07 billion listing on the Hong Kong Stock Exchange, Apogee Therapeutics’ $345 million offering on NASDAQ, and Neumora Therapeutics’ $250 million debut on the NASDAQ. These IPOs marked advancements in treatments for various medical conditions, spanning from cancer to specialized inflammatory disorders.
Annual IPO Activity
In 2023, 16 IPOs raised $2.8 billion, a decline from the previous year’s 22, which generated $3.5 billion. However, when we look at the total figures for both years, 38 IPOs raised $6.3 billion collectively. The numerical drop in IPO numbers in 2023 is an all-time low from the last 5 years.
Annual IPOs & Follow-Ons
2023 had 219 financing rounds, including $2.5 billion raised through IPOs and a significant $25.7 billion through follow-on offerings. Conversely, in 2022, there were 222 financing rounds, with $2.8 billion coming from IPOs and $21.9 billion from follow-ons. The last two years had 441 financing rounds, accumulating $5.2 billion through IPOs and $47.6 billion through follow-ons in therapeutic platforms and biopharma.
IPOs by Stage
Our data for 2023, therapeutics & platforms, had 16 IPOs tied explicitly to the lead product stage, raising $940 million. Notably, funding was distributed across various developmental stages: preclinical ($345 million), phase-I ($94 million), phase-II ($161 million), and phase-III ($340 million). However, no IPOs in the platform/discovery or approved/marketed stages. In contrast, 2022 witnessed more IPOs, totalling 20, yet the overall amount raised decreased to $576 million. These IPOs encompassed funding in preclinical ($70 million), phase-I ($153 million), phase-II ($103 million), phase-III ($230 million), and approved ($20 million) stages.
Top IPOs for 2023
ACELYRIN – IPO – $621M
Date of Debut: May 5, 2023
Exchange: NASDAQ
Offering: 34.5 million shares, Offer Price: $18 per share
Total Proceeds: $621 million
Specialization: Subcutaneous treatment for hidradenitis suppurativa (HS)
WuXi XDC – IPO – $520M
Date of Debut: July 2023
Exchange: Main Board of the Stock Exchange of Hong Kong Limited
Offering: 178,446,000 shares, Offer Price: HK$20.60 per share
Total Proceeds: Approximately HK$4,071 million
Specialization: Antibody-drug conjugates (ADC) and broader bioconjugate market.
Apogee Therapeutics – IPO – $345M
Date of Debut: July 18, 2023
Exchange: NASDAQ
Offering: 20,297,500 shares, Offer Price: $17.00 per share
Total Proceeds: Approximately $345 million
Specialization: Unique biologics for various medical conditions.
Neumora Therapeutics – IPO – $250M
Date of Debut: September 15, 2023
Exchange: Nasdaq Global Select Market
Offering: 14,710,000 shares, Offer Price: $17.00 per share
Total Proceeds: Approximately $250 million
Specialization: Neuroscience drug development.
Cargo Therapeutics – IPO – $281.3M
Date of Debut: November 10, 2023
Exchange: Nasdaq Global Select Market
Offering: 18,750,000 shares, Offer Price: $15.00 per share
Total Proceeds: Approximately $281.3 million
Specialization: Innovative cell therapies for cancer patients.
