11 Biotech IPOs Raise More Than $300 Million, While Stock Falls After Drug Approval

The pharmaceutical and biotech industries saw two contrasting trends: a surge in large initial public offerings (IPOs) and sharp stock declines after drug approvals.

According to BioPharma Dive on the 18th, biotech IPOs have rebounded markedly this year after last year’s slump. More than 20 companies have priced offerings of new shares so far this year, nearly twice the total for all of last year.

Offering size has been particularly notable. Electra Therapeutics priced its IPO on the night of the 18th, becoming the 11th pharmaceutical company to raise more than $300 million.

That matches the annual record set in 2021, the biggest year ever for biotech IPOs, and exceeds the total for the past four years combined.

Scilex reached the milestone of a drug approval, but its stock swung sharply. Last week, the company received U.S. Food and Drug Administration (FDA) approval for Itvisma, a treatment for spinal muscular atrophy.

Spinal muscular atrophy is a rare disease, and Itvisma is the first muscle-targeted treatment. Scilex overcame a delay of more than a year after its approval was previously rejected because of manufacturing issues.

Immediately after the approval, the stock surged to $62 in after-hours trading before falling to around $47, and it closed just above $49 on the 18th.

Safety information warning of fracture risk was cited as one factor behind the volatility. Cory Kasimov, an analyst at Evercore ISI, wrote that the news “raised questions among investors.”

However, he interpreted the stock’s decline as a “sell the news” move, in which shares fall after positive news. Ritu Baral, an analyst at TD Cowen, projected that Itvisma sales would peak at $2.3 billion in 2035.

GSK is accelerating its licensing deals with Chinese biotech companies. Since 2025, it has signed five deals with Chinese pharmaceutical companies, the second-highest number after Roche.

It signed two deals this month alone, both involving next-generation cancer drugs. Its partnership with Hutchmed secured rights to an antibody-targeted therapy conjugate, while its deal with Keymed Biosciences brought in a multiple myeloma treatment.

A drug that drew attention at the World Conference on Lung Cancer over the weekend was also secured by GSK through a 2023 partnership with Hansoh Pharma. Michael Leuchten, an analyst at Jefferies, described the drug as an “undervalued potential major oncology asset.”