Initial public offerings by small private biotech companies are poised to stage a comeback later in 2023 as the pace of interest rate hikes slows, but tougher economic conditions will make investors more inclined to pick firms which have drugs in human trials. In the biotech sector, there were only 47 IPOs last year that raised a total of about $4 billion, compared with 152 offerings in 2021 that had raised over $25 billion. However, more biotech companies are expected to tap the U.S. IPO market this year as the Federal Reserve dials down the size of its rate hikes and private investment rounds fail to raise adequate capital to fund expensive clinical trials, industry experts told Reuters.
Read the full article: Biotech IPOs to Bloom with Spotlight on Startups with Human Trial Data
Source: https://www.reuters.com/markets/deals/biotech-ipos-bloom-with-spotlight-startups-with-human-trial-data-2023-02-13