Market Overview

Historical Biotech IPO Data From The 'Godfather Of Biotechnology'

Historical Biotech IPO Data From The 'Godfather Of Biotechnology'

  • Stelios Papadopoulos’ most recent biotech IPO data indicate a record number of biotech IPOs in 2014 and 2015.
  • Not surprisingly, the amount of funding raised by these IPOs is also on record pace in 2015.
  • The mean market cap of the newly-public companies remains near its 15-year average.
  • Stelios Papadopoulos, chairman of Biogen Inc (NASDAQ: BIIB) and affectionately referred to as the “Godfather of Biotech,” recently updated his massive database of historical biotech IPO data. Papadopoulos collects his data on his own, and his latest charts provide some helpful insight into the biotech IPO climate.

    Number Of IPOs On The Rise

    According to Papadopoulos’ data, there have been 734 biotech IPOs since 1979. However, his first chart shows just how much the biotech IPO scene has exploded in the past three years.

    Related Link: ETF Outlook: More Biotech Blunders, Or A Biotech Bounce?

    The number of biotech IPOs hit an all-time high in 2014, eclipsing the previous annual high in 2000 by a wide margin. As of Q3 2015, it appears that the biotech market is once again on pace to eclipse the 2000 watermark this year.

    Unprecedented Funding

    While the biotech sector might not set a record number of IPOs this year, it is certainly on pace to exceed the all-time high set in 2000 of nearly $6 billion in total capital raised. According to Papadopoulos, the biotech sector has raised a grand total of $35.3 billion via IPOs since 1979.

    While the average amount of capital raised by biotech IPOs so far this year is within the historical range, the largest biotech IPOs have raised money like never before in 2015. Back in June, Axovant Sciences Ltd (NYSE: AXON) set a new record for the biotech sector, raising $315 million when it went public.

    Market Caps Stable

    Surprisingly, the overall size of biotech companies by market cap upon going public has remained relatively steady. While the market caps of the larger companies have continued to grow, the average market cap following an IPO remains right around its average level over the past 15 years.

    Disclosure: The author holds no position in the stocks mentioned.

    Image Credit: Public Domain


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