Marcin Frąckiewicz

February 4, 2026, 1:52 AM EST. The surging biotech initial public offering (IPO) wave in 2021, fueled by pandemic-driven investments, raised $15.6 billion with 99 companies debuting publicly. Experts like Mayo Venture's Audrey Greenberg called it a "masterclass" of scientific enthusiasm matched with financial excess. However, many of these firms now face challenges, with some bankrupt, exposing a gap between financial backing and clinical readiness. Industry leaders attribute this to companies going public too early, without mature data or infrastructure. The sector is now undergoing a "recalibration," focusing on clinical validation and operational discipline to regain investor confidence. Notably, 2025 shows signs of recovery with an increase in late-stage funding rounds and 11 IPOs, including Evommune's $172.5 million offering. Analysts see this as the industry correcting its course rather than collapsing.