After spectacular fundraising success during the pandemic followed by a spectacular crash when ideas failed to bear fruit, investors are starting to return to the more promising parts of the listed biotech sector.
The Covid-19 generation of newly public biotechs has been struggling in the industry’s worst bear market since the 2000s. But after dire first and second quarters that hit biotech stocks indiscriminately, a gap is opening up between the more robust companies, which have begun to raise more money after positive trial data, and the rest.
Vincent Meunier, a managing director at European investment bank Bryan Garnier & Co, said the market already felt different from just two months ago. “Before the summer break, it’s true we had to postpone a lot of transactions. The market was simply not open, investors were really fed up and exhausted.”