At the recent Benzinga Virtual Healthcare Summit, Laura Chico, Ph.D., senior vice president of equity research at Wedbush Equity Research, shared her optimistic views on the 2024 biotech IPO market and the current M&A trends in the industry.

Chico’s discussion happened against the backdrop of a fluctuating market that has seen its share of highs and lows in recent years, particularly in light of the impact of the COVID-19 pandemic on health care.

A Promising Year For Biotech IPOs

According to Chico, the biotech IPO scene is experiencing a notable uptick in 2024, with six IPOs already priced and performing well in the market. This marked a positive shift from previous years, when the number of IPOs significantly declined.

“So far, in 2024, we’ve had six IPOs price, and I think, relatively speaking, they’ve held up pretty well in market performance,” Chico stated.

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M&A Landscape

Chico also highlighted the heightened activity in biotech M&A, noting that the industry witnessed a higher-than-normal rate of acquisitions in recent months. This was underscored by recent high-profile acquisitions such as AstraZeneca‘s AZN purchase of Fusion Pharma. 

“Even yesterday, we got the announcement that Fusion Pharma was being acquired by AstraZeneca for one and a half billion dollars,” she mentioned. 

Election Year Considerations

As the U.S. heads into an election year, the biotech sector often faces uncertainty that can impact market performance. She observed that historically, biotech tends to underperform in the months leading up to a presidential election but sees a boost in the subsequent months. 

“This has been true for almost every presidential election in the past five cycles. We’ve seen higher performance in the three months after the election,” she explained.

Chico’s discussion at the Virtual Healthcare Summit painted a cautiously optimistic picture for the biotech industry in 2024. There was an expected rise in IPOs and continued robust M&A activity despite the potential headwinds of an election year.

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