Biotech companies that became popular with investors during the pandemic are now falling out of favour, and are increasingly struggling to raise funds, according to a report in the FT this morning (10 February).
Having raised a record $32.7bn in initial public offerings (IPOs) during the last two years, 83% of recent biotech listings are now trading at a stock price well below their IPO price, according to Refinitiv data. In fact those that listed in 2021 are trading 27% below their IPO price, while recent US-listed companies are trading at 22% below theirs. The Nasdaq Biotechnology Index fell more than a fifth since its peak in February last year, while both the Nasdaq and the S&P 500 rose 3% and 17% respectively. Biotech and healthcare investors hope for rebound following weak 2021 Ge...
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