2026 has marked a significant turning point for biotech IPOs after several years of muted activity and cautious investor sentiment.
A new record for the most cash raised by a biotech in an IPO was set in April, only to be broken just weeks later in a sign of surging momentum.
To date, 13 life science companies have gone public this year, rising to 17 when tools and diagnostics firms are included in the count.
Ernst & Young counts approximately $132 billion in merger and acquisition deal value across the sector so far this year, reflecting a broader surge in dealmaking.
Rich Ramko, a partner at EY, noted that almost all of the M&A deals this year have involved companies with late-stage assets, highlighting a clear preference from acquirers for de-risked pipelines.
Ramko said he believes it is possible for the sector to see as many or more IPOs in the second half of 2026, though he cautioned that an open IPO window does not mean a return to the go-go days of 2021 and 2022.
Ramko moderated a panel at the BIO Convention in San Diego on Tuesday, bringing together industry figures to discuss what biotech companies need to consider before going public.
Sharon Tetlow, managing partner at Portrero Hill Advisors, said the single most critical requirement before an IPO is investors, noting that biotech specialists lead the sector unlike retail-driven industries.
“While the final syndicate comes together at the very last moment, it’s the result of a very long process,” Tetlow said, underscoring the importance of building investor relationships well in advance.
Dan Angius, Nasdaq’s senior managing director of new listings and capital markets, said that reviewing 13F regulatory filings submitted to the Securities and Exchange Commission is a good way to identify potential investors.
Sam Zucker, a partner in Goodwin’s life sciences group, said identifying and developing investor relationships should ideally begin as early as a biotech’s Series A or Series B financing rounds.
Zucker warned that most clients overestimate the support of their existing investor syndicate, which can create dangerous blind spots when preparing for a public offering.
This matters considerably because with most biotech IPOs, the majority of the capital raised comes from existing investors already familiar with the company and its pipeline.
Zucker also noted that some strategic investor conversations can lead directly to acquisitions, with many major M&A deals in the past year happening because parties did not want to wait for capital markets to support an IPO.
Ramko also stressed the importance of hiring the right chief financial officer, adding that a first-time CEO who has not taken a company public before will want a CFO with a stronger Wall Street background.