Preclinical IPO scorecard: 2020-24

Perception may not match reality when it comes to preclinical biotech IPOs. While they are often viewed as bad for investors and the performance of the broader biotech market, a BioCentury analysis of preclinical IPOs in 2020-24 shows that their share price performance is on par with their clinical counterparts.

Biotechs seeking to go public before reaching the clinic come with more risk than those with clinical readouts. But that risk doesn’t correlate with a worse share price performance or less access to capital. In fact, preclinical IPO companies on average have raised more money in the IPO and in follow-on financings than the average NASDAQ biotech...