The second quarter of 2022 was the weakest quarter for healthcare and biotech IPOs in more than five years. Some media headlines have predicted that it marked the bottom of the biotech market.
The XBI biotech index fund, which serves as an index for many companies that are eyeing a public debut, peaked in January 2021 followed by a fairly steady 16-month decline. But now, the XBI is on the rise. While it’s too soon to know if the XBI rise that kicked off in July 2022 will continue to mirror the rise that drove its 2021 peak, the climb appears to be signaling a comeback of healthcare and biotech IPOs.
If you’re watching the fund, you might now be considering reviving your plans to take your company public.