Fund flows between sectors are a critically important dynamic in the equity capital markets: when net fund flows are positive, more demand for equity exists and stock price movement bias upwards; conversely, when fund flows are negative, the selling pressure softens markets.
A new FDA approval marks a major milestone in the biopharmaceutical business; relatively few biopharma companies are ever able to lay claim to having discovered, developed, or marketed a recently approved medicine.
Although many wrote off the biotech IPO markets as moribund earlier in 2016, the sector has been quietly issuing a steady stream of new offerings. Despite the volatility related to drug pricing, and disastrous first six-weeks of the year, we’ve recently witnessed the 24th biopharma IPO of 2016. For context, in the past two decades, other than the recent window, we’ve only seen more than two dozen VC-backed IPOs in three vintage years. In light of these metrics, and despite the negative sentiment and malaise about biotech IPOs, it’s actually been a historically very strong year in terms of new offerings.
Relative to a decade ago, those of us that have spent time finding new ways to outsmart drug-resistant bacteria have reason to feel optimistic about the current opportunities in our field.
This blog was written by Ankit Mahadevia, CEO of Spero Therapeutics, as part of the From The Trenches feature of LifeSciVC.
Three newly launched companies in the Atlas portfolio raised Series A rounds.