Nasdaq’s Head of Healthcare Listings Shares 2018 Predictions for Biotech IPOs

Nasdaq: What is the current market environment for biotech initial public offerings and biotech listings overall?

Saxe: I expect that 2018 will demonstrate positive momentum for biotech listings overall, and specifically on Nasdaq. We predict 30-plus biotech IPOs this year and a strong first half of 2018 performance leading into midterm elections. Overall, the biotech industry is showing strong signs of momentum. Private healthcare companies continue to see demand from cross-over investors who also participate in the public markets. I also believe that Series A rounds will be larger in 2018, on average.

As private market valuations continue to increase, the biotechnology industry remains attractive. Nasdaq is actively talking to companies that are either confidentially on  or are  . The next wave of biotech IPOs will provide insights into investor appetite for future demand for healthcare and biotechnology IPOs. 

Nasdaq: Are there any regions that show the most potential in 2018? What is Nasdaq's outlook for new listings within the biotech sector?

Saxe: Outside of the traditional biotech hubs, we have seen the Asia-Pacific region driving the global biotechnology story. For example, recently  and  became the first Chinese biotech companies to file for a U.S. listing. The biotech IPO forecast remains strong globally.  , Nasdaq has twice as many healthcare IPOs year-to-date compared to the same period in 2017. Nasdaq continues to be a leader in biotechnology listings overall. Currently 357 biotech companies are   ,  , ,  ,  ,  , and  .  and  recently filed IPOs in addition to and  .

Nasdaq: How has biotech IPO performance been recently? What are trends in the sector?

Saxe: Biotech IPOs are usually very strong performers, based on historical performance. Over the past two years, the Nasdaq Biotechnology Index is up 27.03%. This year, biotech IPOs are up an average of 31.64%  recently announced it is acquiring  for $11.6 billion and for $4.8 billion. Also,  announced it is acquiring for  for $9 billion. I think we will see more M&A activity from the larger players as they look for growth opportunities. These companies might be looking to augment their internal clinical pipelines with mergers or acquisitions.

Nasdaq: You mentioned a few biotech companies above who have listed on Nasdaq. What has their experience been like?

Eyenovia's January 30 IPO raised $27 million; the company develops microformulations of common eye therapies. resTORbio, which develops therapeutics for treating aging-related diseases, raised $85 million from their IPO on January 26. Both companies celebrated their public debut with Nasdaq bell ceremonies and first trade viewings at the Nasdaq MarketSite in Times Square, New York.

For more information about biotechnology listings at Nasdaq, contact Jordan atJordan.Saxe@nasdaq.com .

 

resTORbio CEO Chen Schor (second from left) and his team visited the Nasdaq Stock Market for their initial public offering.

 

Nasdaq recently welcomed Eyenovia (Nasdaq: EYEN) to the Nasdaq Stock Market

 

Nasdaq welcomed Eyenovia CEO Sean Ianchulev (fifth from right) and his team to the Nasdaq Stock Market.

 

Peter Van Vlasselear, CEO of ARMO BioSciences, and his team celebrated ARMO BioSciences IPO at Nasdaq's Closing Bell.

Jordan B. Saxe is Senior Managing Director, Listing Services at Nasdaq. He is responsible for leading business development efforts in the healthcare sector, and brings over thirteen years of experience within the exchange field. He has advised over 200 IPOs and has worked closely with venture capital, private equity and investment firms to educate them on the liquidity options Nasdaq can provide. He holds a B.S. in Business Administration from the University of Vermont.

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The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security, sector, or an overall investment strategy. Neither Nasdaq nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding sector performance and specific companies are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.

[1] Source: Nasdaq data. As of March 7, 2018.

[2] Based on filed IPO price to first day closing price.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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