Why Are So Many Biotech Startups Filing IPOs In 2016?
In 2016, a number of biotech companies are awaiting FDA approval, which will give the green light for potentially lucrative drugs to go to market. Adding more excitement to the sector this year is the sheer amount of biotech companies going public in the coming year. We’re barely into the year and already six companies have filed their IPO plans.
The wave of new IPOs comes at the end of one of the slowest years for the biotech industry. After rapid growth from 2011 to mid 2015, the industry slumped in the latter half of the previous year. For example, the iShares NASDAQ Biotechnology Index ETF (IBB) rose just 6.6 percent in all of 2015 after enjoying average annual gains of 30 percent. New biotech IPOS slowed down to a halt during latter half of 2015.
The wave of new IPOs comes at the end of one of the slowest years for the biotech industry. After rapid growth from 2011 to mid 2015, the industry slumped in the latter half of the previous year. For example, the iShares NASDAQ Biotechnology Index ETF (IBB) rose just 6.6 percent in all of 2015 after enjoying average annual gains of 30 percent. New biotech IPOS slowed down to a halt during latter half of 2015.