Biotech IPO Slump Seen Dragging Into 2026 as Returns Disappoint

Drug developers aren’t expected to come back to the US equity markets in full force until next year — lagging other industries as biotechnology has delivered only subpar investor returns.

Only five biotech companies raising more than $50 million have gone public so far this year, following last year’s already stunted number of 18 initial public offerings, data compiled by Bloomberg show. The debuts are far from the frenzy of activity during the pandemic when roughly 150 companies from the sector went public over a two-year stretch starting in 2020.

“The IPO and follow-on equity market is not closed completely ...