Biotech Went Through Its IPO Boom. Now the Shakeout Is Underway
- Industry stock gauge has fallen for the past two years
- Public debuts cooled last year after flood of new firms
Technicians use a protein purification unit in a laboratory in Bengaluru, India.
Photographer: Samyukta Lakshmi/BloombergThis article is for subscribers only.
The biotech industry is in shake-out mode after the ranks of public drug developers swelled in recent years amid an IPO boom.
A scrum for capital among the expanded pool of companies and the make-or-break nature of clinical trials drove a contraction in the number of public biotechs last year, with some scooped up by larger rivals while others shuttered. As the sector stabilizes after last year’s slump, a divergence in fortunes is taking center stage.