Gains are made despite a reduction in the number of US biopharma IPOs in 2022.
While there are significantly fewer initial public offerings in 2022 than in 2021 and 2020, the caution expressed by biopharma companies and investors seems to be paying off, with this year showing the best average performance of the three years. An analysis of only 12 IPOs conducted on U.S. exchanges this year indicates that since their debuts, they are up an average of 7%. In contrast, the 90 IPOs completed in 2021 that were part of the analysis are down an average of 42%, while the 74 from 2020 are down by 34.6% on average.
Enthusiasm for the industry skyrocketed in 2020 following the World Health Organization declaring COVID-19 a pandemic. IPOs hit record levels over the next 21 months and huge sums of money were raised for research. Companies seized the moment to collect funds through a wide-open window, enabling some to enter the public arena before their time and without the knowledge of future market influences, such as rising inflation, a mutating SARS-CoV-2 virus, and political upheaval.
In 2022, investors have pulled back and fewer companies have sought a public listing. The year seems to have served as a correction for the earlier zeal. Even follow-on offerings are at their lowest levels, having raised only $8.4 billion through the second week of August, compared with about $20 billion during the same period in 2021.
A total of 23 IPOs so far in 2022 have raised $3.7 billion, compared with $16.7 billion through the end of July in 2021 and $12.5 billion during the same timeframe in 2020. The volume of IPOs in each of the two prior years was 98 and 51, respectively, in those seven months.
Cincor up 125%
The best performer among 2022 IPOs analyzed is Cincinnati-based Cincor Pharma Inc., which raised $212.6 million in a January IPO. Shares (NASDAQ:CINC) were priced then at $16 a piece and have since climbed to a $35.94 close on Aug. 15, representing a rise of about 125%.
Top 2021 performers
The top performer among 2021 IPOs is Hong Kong-based Regencell Bioscience Holdings Ltd ., which went public in July of that year, raising $24.9 million. Its stock (NASDAQ:RGN) has risen 232% since then. The company focuses on traditional Chinese medicine for neurocognitive disorders and degeneration.
As an early-stage bioscience company, Regencell Bioscience (NASDAQ: RGC) is a Hong Kong-based company focused on the research, development, and commercialization of Traditional Chinese Medicine (TCM) for the treatment of neurocognitive disorders and degenerations.
The company has grown to be more than just a research and development facility for the treatment of neurocognitive disorders and degenerations. "It's paving the way for extraordinary improvements in TCM to be mainstream. Why should only a small group of people or communities have access to these groundbreaking treatments?"
In a recent clinical study - EARTH Trial - results showed that RGC-COV19TM is an effective formula for the alleviation and elimination of COVID-19 symptoms within 6 days. This in return helps to reduce the risks of hospitalizations and death. The rigorous trials have shown the effectiveness of TCM and alternative medicine in a hyper-modern and tech-driven world.
San Diego-based Prometheus Biosciences Inc. (NASDAQ:RXDX) is up 156% and Cambridge, Mass.-based Verve Therapeutics Inc. (NASDAQ:VERV) is up 99%.
Prometheus is focused on therapeutics and companion diagnostics for immune-mediated diseases. It expects phase II data in the fourth quarter for PRA-023 for ulcerative colitis and for Crohn’s disease. Verve’s lead candidate is a gene editing medicine, Verve-101, for heterozygous familial hypercholesterolemia. Regulatory clearances for a clinical trial application in the U.K. and an investigational new drug application in the U.S. are expected later this year.
https://www.bioworld.com/articles/521750-down...correction
While there are significantly fewer initial public offerings in 2022 than in 2021 and 2020, the caution expressed by biopharma companies and investors seems to be paying off, with this year showing the best average performance of the three years. An analysis of only 12 IPOs conducted on U.S. exchanges this year indicates that since their debuts, they are up an average of 7%. In contrast, the 90 IPOs completed in 2021 that were part of the analysis are down an average of 42%, while the 74 from 2020 are down by 34.6% on average.
Enthusiasm for the industry skyrocketed in 2020 following the World Health Organization declaring COVID-19 a pandemic. IPOs hit record levels over the next 21 months and huge sums of money were raised for research. Companies seized the moment to collect funds through a wide-open window, enabling some to enter the public arena before their time and without the knowledge of future market influences, such as rising inflation, a mutating SARS-CoV-2 virus, and political upheaval.
In 2022, investors have pulled back and fewer companies have sought a public listing. The year seems to have served as a correction for the earlier zeal. Even follow-on offerings are at their lowest levels, having raised only $8.4 billion through the second week of August, compared with about $20 billion during the same period in 2021.
A total of 23 IPOs so far in 2022 have raised $3.7 billion, compared with $16.7 billion through the end of July in 2021 and $12.5 billion during the same timeframe in 2020. The volume of IPOs in each of the two prior years was 98 and 51, respectively, in those seven months.
Cincor up 125%
The best performer among 2022 IPOs analyzed is Cincinnati-based Cincor Pharma Inc., which raised $212.6 million in a January IPO. Shares (NASDAQ:CINC) were priced then at $16 a piece and have since climbed to a $35.94 close on Aug. 15, representing a rise of about 125%.
Top 2021 performers
The top performer among 2021 IPOs is Hong Kong-based Regencell Bioscience Holdings Ltd ., which went public in July of that year, raising $24.9 million. Its stock (NASDAQ:RGN) has risen 232% since then. The company focuses on traditional Chinese medicine for neurocognitive disorders and degeneration.
As an early-stage bioscience company, Regencell Bioscience (NASDAQ: RGC) is a Hong Kong-based company focused on the research, development, and commercialization of Traditional Chinese Medicine (TCM) for the treatment of neurocognitive disorders and degenerations.
The company has grown to be more than just a research and development facility for the treatment of neurocognitive disorders and degenerations. "It's paving the way for extraordinary improvements in TCM to be mainstream. Why should only a small group of people or communities have access to these groundbreaking treatments?"
In a recent clinical study - EARTH Trial - results showed that RGC-COV19TM is an effective formula for the alleviation and elimination of COVID-19 symptoms within 6 days. This in return helps to reduce the risks of hospitalizations and death. The rigorous trials have shown the effectiveness of TCM and alternative medicine in a hyper-modern and tech-driven world.
San Diego-based Prometheus Biosciences Inc. (NASDAQ:RXDX) is up 156% and Cambridge, Mass.-based Verve Therapeutics Inc. (NASDAQ:VERV) is up 99%.
Prometheus is focused on therapeutics and companion diagnostics for immune-mediated diseases. It expects phase II data in the fourth quarter for PRA-023 for ulcerative colitis and for Crohn’s disease. Verve’s lead candidate is a gene editing medicine, Verve-101, for heterozygous familial hypercholesterolemia. Regulatory clearances for a clinical trial application in the U.K. and an investigational new drug application in the U.S. are expected later this year.
https://www.bioworld.com/articles/521750-down...correction
