The biotech industry appears to be on the cusp of a resurgence, with promising signs that the IPO market is reopening in 2026. Following a dramatic decline in listings after a peak during the COVID-19 pandemic, when 87 U.S. biotech companies went public in 2021, the climate for initial public offerings (IPOs) was notably stagnant. The number of biotech IPOs plummeted to an annual average of just around 20 over the subsequent years, hitting a low of only 11 in 2025, according to Pitchbook data.
However, the latest trends suggest a turnaround, as several biopharmaceutical companies are now preparing for IPOs on the Nasdaq. Aktis Oncology was the first to set a positive tone in January, successfully raising $318 million through its upsized offering aimed at funding early-phase clinical trials for its radiopharmaceutical candidates. CEO Matthew Roden noted that the company sensed a shift in investor appetite late last year and felt confident in its decision to go public early in the year.
Aktis initially targeted net proceeds of approximately $181 million but achieved much higher demand, selling 17.6 million shares instead of the previously planned 11.8 million. This successful listing briefly made Aktis the largest biotech IPO since 2024, until it was surpassed by Eikon Therapeutics, which secured $381 million to support trials for its immune modulator.
The IPO wave did not stop with these two companies. Notably, Belgium-based Agomab Therapeutics raised $200 million on the Nasdaq, marking a significant entry into the U.S. market aimed at financing their pipeline of ALK5 inhibitors. Agomab’s CEO Tim Knotnerus emphasized that the time was ripe for accessing public markets to gain deeper capital support for their research initiatives.
Biotech companies had previously been hesitant to pursue IPOs amidst a challenging investment climate, but Knotnerus indicated that there is renewed interest, particularly for clinical-stage assets. The recent surge in IPO activity suggests a bifurcated market where product-focused companies are gaining traction while platform companies gauge investor interest in their broader pipelines.
The trend continues with Spyglass Pharma, which focused on long-acting versions of established drugs for chronic eye conditions, successfully launching its $150 million Nasdaq IPO. Additionally, Veradermics made waves with a $256.3 million debut on the New York Stock Exchange, backing their oral hair loss treatment.
Analysts such as Ben Zercher from PitchBook recognize a distinct separation in the market dynamics. Companies demonstrating clinically grounded programs are at the forefront, contrasting with past years where many businesses entered the public arena without robust data.
Investor relations experts suggest the improved quality of data and clinical pipelines among new entrants are crucial for attracting more sophisticated investors who recognize the inherent risks and advantages associated with clinical trials. Specific sectors, including oncology, orphan diseases, and diabetes-related treatments, are particularly appealing, as companies show promising human data indicating genuine clinical benefits.
However, challenges remain. Despite a positive start to the year, there is caution regarding the influence of overall market fluctuations, which could impact the momentum of biotech IPOs. Knotnerus pointed out the need for agility and resilience amidst unpredictable external factors, relying on strategic planning and investor support to navigate the market.
Looking ahead, industry experts anticipate that the favorable IPO window could lead to 30 to 35 biotech offerings throughout 2026 if current market support remains steady. There’s a shared optimism that the biotechnology sector is poised for a notable rebound, driven by quality innovations and an increasing number of companies ready to seize the opportunity for public funding.
