Three-Month Drought in U.S. Biotech IPOs: Recent Developments and Context

Biotech IPO activity has sharply declined in recent years, with the IPO 'window mostly shuttered' since the pandemic's peak, and only a handful of companies braving public markets since then3.

In 2025 so far, just five biotech companies have gone public in the U.S., which is a significantly lower frequency compared to previous years3.

Biotech IPOs in 2024 performed poorly, ending up approximately 50% below their initial deal prices, which has likely contributed to the current slowdown3.

While 2025 IPOs have fared somewhat better (up an average of 14% from their IPO prices, with three of five in the green), the market remains highly selective and cautious3.

No new U.S. biotech IPOs have been recorded in the last three months as of mid-May 2025, indicating a notable freeze in public fundraising for the sector23.

The recent pause reflects broader trends in the biotech sector, including market volatility, investor caution, and heightened scrutiny of fundamental performance before companies are able to go public4.

Some biotech IPO activity is picking up in other regions, such as Hong Kong, where companies like Hengrui are launching large offerings5.

Sources:

2. https://www.biopharmadive.com/news/biotech-ipo-performance-tracker/587604/

3. https://www.lw.com/admin/upload/SiteAttachments/Takeaways-From-Biotech-IPOs-So-Far-In-2025.pdf

4. https://www.wellington.com/en/insights/biotech-ipos-in-2025

5. https://www.thepharmaletter.com/biotechnology/hengrui-hong-kong-ipo