Baker McKenzie’s analysis of 2016 healthcare IPOs shows a record year for biotech led to a 2% increase in capital raised from healthcare IPOs in 2016 despite a 39% decline in the volume of listings. Biotech deals, which include healthtech listings, continue to dominate the sector in terms of value, accounting for 45% of total capital raised with USD 8.16 billion from 27 deals.
“While healthcare IPOs volume slowed in 2016, the sector outperformed in a poor year for IPOs generally. Biotech companies had a record year, building on year-on-year growth. Healthtech companies seeking additional capital to commercialise their technologies globally and fund further research and development, are becoming more active as the potential for personalised healthcare attracts interest and investment,” noted Ben McLaughlin, Global Chair of Baker McKenzie’s Healthcare group.
On the cross-border front, there was a marked decline in cross-border healthcare listings in line with the overall market, with 15 listings raising USD1.6 billion, down from USD4.8 billion in 2015. Still, North American exchanges continue to attract the most number of cross-border listings of companies seeking better valuations from large, well informed investor bases.