Post-Hoc Live: What's making biotech IPOs work again?

Biotech IPO activity began to reappear in 2026, with several clinical-stage companies entering public markets after a more cautious funding environment in recent years.

Biotech's IPO tide is finally turning, thanks in part to the recent M&A surge.

Emboldened by Kailera Therapeutics’ record-setting IPO and a string of other upsized offerings, the biotech sector is showing renewed confidence that the public markets are officially open again.

A wave of biotechs, including Avalyn Pharma, Hemab Therapeutics and Seaport Therapeutics, have followed in short order.

The recovery has been driven by several converging factors. The XBI (SPDR S&P Biotech ETF) rebounded from its 2022 lows, giving investors confidence that public biotech equities could once again generate returns. The Federal Reserve's pivot toward easing in late 2024 reduced the discount rate applied to long-duration biotech assets.

Perhaps most importantly, the quality of companies approaching the public markets has improved dramatically. The 2025-2026 class of IPOs overwhelmingly features companies with clinical proof-of-concept, differentiated mechanisms, and clear paths to commercialization or partnership.

Companies with Phase 2 data demonstrating efficacy in their lead indication consistently achieve higher valuations and better post-IPO performance.

Investors now expect at minimum Phase 1b/2a data showing a clear signal of activity.

An estimated 30-50 biotechs are in the confidential filing stage. Expect 3-5 IPOs per month through H1 2026, with the potential for acceleration if market conditions remain favorable.

The IPO window is open. All 19 IPOs tracked in H1 came from Biotech - raising a combined $5.2B. Names like Kardigan, Eikon Therapeutics, Hemab Therapeutics, and Aktis Oncology all made their public market debut.

The main thing I hear is that they just want certainty in terms of, you know, FDA leadership, you know, who the cedar chief will be. They want certainty um that funds are in it for the long run.

The biotech markets are showing renewed signs of life. The IPO window that cracked open in late 2025 is now wide open.