Global Biopharma IPOs Reach $8.52 Billion in 2024

Synopsis

In 2024, the global biopharmaceutical sector's IPOs surged by 68.4% to an impressive $8.52 billion, marking the highest total since 2021. This growth signals increased investor interest in advanced-stage companies amid a favorable financial climate.

Key Takeaways

Biopharma IPOs reached $8.52 billion globally in 2024.
Completed IPOs increased to 50, up from 5.06 billion in 2023.
Investor interest is shifting toward companies with solid clinical data.
High-value IPOs nearly doubled in 2024.
Galderma led the market with a $2.48 billion IPO.

New Delhi, April 19 (NationPress) The initial public offerings (IPOs) in the biopharmaceutical industry have experienced a remarkable surge of 68.4 percent, accumulating a total of $8.52 billion worldwide in 2024, as reported by a recent study.

This sector observed a notable upswing in 2024, with 50 completed IPOs generating $8.52 billion, a significant increase from the $5.06 billion collected in 2023, representing the highest total IPO value raised since 2021.

This rebound, spurred by interest rate reductions from the US Federal Reserve, signifies the most substantial total since 2021, according to GlobalData, a prominent data and analytics firm.

While investors remain cautious, there is a growing interest in companies showcasing robust clinical data, indicating a recovery in public markets and a pivot toward more advanced-stage biopharmaceuticals.

The number of completed IPOs raising over $100 million nearly doubled, escalating from $4.39 billion across 15 IPOs in 2023 to $7.88 billion through 24 IPOs in 2024.

The rise in high-value IPOs in 2024 suggests that even though public investors are being selective, enhanced capital availability due to interest rate cuts has enabled investments in biopharmaceutical companies with a strong value proposition, stated Alison Labya, a business fundamentals analyst at GlobalData.

The largest biopharmaceutical IPO in 2024 was conducted by Galderma, a dermatology firm based in Switzerland, which raised $2.48 billion, according to the report.

Galderma’s IPO came after a planned IPO in February 2022 that was not finalized, as well as a postponement of its IPO in March 2023 amid market fluctuations.

Despite the overall rise in IPO value, discovery and preclinical-stage companies witnessed a significant drop in total IPO value from $490.6 million in 2023 to $112.5 million in 2024, reflecting a shift in public investor preferences toward more advanced-stage companies, Labya further explained.

Nevertheless, IPO activity might be curtailed by an expected rise in private biopharmaceutical mergers and acquisitions in 2025 as companies aim to replenish their pipelines ahead of impending patent expirations, the report mentioned.