The ICR Westwicke Blog is designed to deliver information and insights into the ever-changing world of healthcare communications.
In the wake of the coronavirus pandemic, the IPO market may never look the same. The swift shift to virtual roadshows, for example, has demonstrated efficiencies that are likely to make digital alternatives stick even after regular business travel resumes. But beyond the operational changes behind preparing a company to go public, the market has seen growing interest in alternatives to the IPO itself.
The challenges of functioning successfully in an extended COVID-19 environment have presented many new ways of doing business. This is especially evident for events such as non-deal roadshows (NDRs).
Over the past several months, interest in special purpose acquisition companies (SPACs) has grown exponentially. SPAC transactions serve as an alternative to traditional IPOs, and while they have existed for many years, they are currently experiencing a resurgence within several industries.
According to some experts, the past several months have created more change in the IPO market than the last 25 to 30 years. In the recent webinar hosted by ICR Capital and Davis Polk, those experts discussed what they’ve seen in the IPO market recently, changes to standard IPO processes, and what’s to come for IPOs during the remainder of the year.
For much of the first half of 2020, the coronavirus pandemic ground most business to a halt. Biotech innovation, however, has continued in full force. Even during the turbulent first few months of the year, biotech companies have moved forward with successful IPOs.
The pandemic isn’t over, however, and cases continue to rise in parts of the U.S. What will that mean for IPOs in the second half of the year?
In January, we made three predictions about the IPO market in 2020 — but no one could have predicted the current market conditions and business ramifications as a result of the coronavirus pandemic. Companies across the globe have had to change the way they do business, from transitioning to a remote workforce to making changes to their supply chain.
During the year (or more) before your company goes public, you’ll be in a constant state of activity, from building relationships with investors, bankers, and sell-side analysts, to engaging in test-the-waters meetings. However, once your S-1 flips public, the U.S. Securities and Exchange Commission (SEC) requires that you wait 15 days before your road show begins. That doesn’t mean you should sit back and relax, though. Use this checklist to maintain your company’s momentum and progress during this time.
Financial markets are notoriously difficult to predict. However, armed with decades of Wall Street experience, our investor relations professionals know what can create a strong IPO market — and what can close that window of opportunity.
As we enter the new year, there are several factors to consider for companies that may be considering an IPO. Based on our experience, here are our predictions for the life sciences IPO market in 2020.
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As the rock ‘n’ roll generation begins settling into their senior years, the “Baby Boomer factor” is wielding its heavy influence on healthcare as it has on other industries. Healthcare spending has grown substantially over the past few decades, and demand will likely remain strong as the number of Americans aged 65 and older will more than double by 2060. At the same time, technologies such as artificial intelligence, blockchain, software-as-a-medical-device and other advances are transforming the healthcare industry and threatening the status quo through rich networks of connection, collaboration, and interdependence.
Comprised of former buy- and sell-side professionals, Westwicke’s managing directors can attest to how notoriously difficult financial markets are to predict. One area where there is at least some degree of certainty is the heightened challenge of executing a financing in the midst of an election year, where initial public offering (IPO) activity and appetite for risk tend to diminish, particularly in a politically-charged vertical such as healthcare.
