Compared to the more cautious situation in 2016, the European public biotech sector is on the road to further growth this year. In 2017, the volumes of IPOs and follow-on financings increased compared to the preceding year. This is demonstrated by the final numbers for 2017, brought together in this issue of BIOCOM’s capital market report.
The report analyses all of the European biotech firms listed on one of the 14 trading centres in Europe or on the US Nasdaq. Taking all indicators into account – number and volumes of IPOs, follow-on financings and secondary listings – total proceeds of €5.09bn were raised by European biotech firms in 2017, an increase of 54% compared to 2016. In 2017, a total of 19 European biotech IPOs took place, raising a total amount of €815m. This year shows an increase of 47% compared to the same period in 2016. Most of the 19 firms opted for one of the 14 European trading centres, with three companies floating on US Nasdaq, instead. The highest IPO volumes in 2017 were recorded for ObsEva SA (€90m), InflaRx (€86m) and Nucana Biomed (€85m) on the US Nasdaq. Additionally, five secondary listings of European companies on Nasdaq were recorded to date: argenx (€103m), Verona Pharma (€82m), Zealand Pharmaceuticals (€67m), ERYtech (€106.5m) and Ablynx (€195m).
Revival on the US Nasdaq
In 2017, US investors showed significant interest in biotech stocks compared to the preceding year European biotech companies profited from this positive trend. They raised total financial proceeds of €2.16bn via IPOs, secondary listings and follow-on financings in the US, representing almost half (42%) of the total capital raised by all European biotech companies in 2017.
Europe more attractive in 2017
In 2017, the majority of companies decided on a listing in Europe (15) in comparison to the US (4). Among the European trading centres, Paris and London, in particular, are the most attractive stock markets. In addition, the stock market in Stockholm seems to appeal to more and more biotech companies.
This text is part of BIOCOM's "6th Analysis of European biotech companies on the stock markets: US vs. Europe":