After a strong start to the year, the biopharma sector faced renewed headwinds in Q2 2024 including a more hawkish outlook from the Federal Reserve. While capital markets activity slowed compared to the previous quarter, the pace of public financings remained robust with 58 total offerings (including IPOs, follow-ons, PIPEs, and RDs), raising a total of $10.0 billion. The pace of “crossover” financings also continued to increase, setting expectations for an uptick in IPOs heading into the second half of the year as issuers look to act before the U.S. presidential election in November. Meaningful public M&A activity softened with just three announced deals valued at over $1 billion compared to five private acquisitions at this level, as high-profile private activity dominated headlines.
Our midyear investor survey suggests investors remain cautiously optimistic about the remainder of 2024 while key areas of interest have not changed materially as I&I/oncology and ADCs/radiopharmaceuticals remain the therapeutic areas and modalities, respectively, with greatest enthusiasm.
William Blair’s Biopharma team shares perspectives in the Quarterly Rx: Q2 2024 U.S. Biopharma Recap.
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