Biotech IPO Market Expected to Rebound in 2025 with Increased Investor Optimism

Rebound in Biotech IPOs:
The biotech IPO market is expected to bounce back further in 2025, following signs of recovery in 2024. This includes a notable increase in IPO activity, with 16 companies going public on U.S. exchanges during January-September 2024, raising a combined $3 billion1 3.

Investor Optimism:
Senior leaders and investors are confident in an upward trajectory for IPOs in 2025, with 64% of respondents in the Jefferies 2024 Temperature Check expecting an IPO level uptick next year3 4.

Therapeutic Innovation:
The competitive IPO market in 2025 is expected to highlight therapeutic innovation and strategic differentiation, particularly in sectors such as oncology, immunology, cell and gene therapies, and AI-driven drug discovery4.

Recent IPO Filings:
Companies like Odyssey Therapeutics and Sionna Therapeutics have filed IPO paperwork, joining the queue of biotechs testing investors’ IPO interest in 20252 5.

Market Conditions:
The IPO market is expected to expand further in 2025, with a backlog of companies that delayed public offerings in recent years now aiming to enter the market. However, a resurgence of inflation could slow or reverse this projected growth4.