Head of Post-Listing Advisory
In each newsletter, our Post-Listing Advisory team shares some insights to support your journey on capital markets. Our first market insight is on biotechs.
Despite lower amounts of capital raised by listed biotechs on equity capital markets in the year to date (€547 million), we believe that the sector will attract investors again. This confidence is illustrated by the Next Biotech Index, which has recovered from its Q4 18 low. Investors are demanding quality and market capitalisation is concentrated around mid-sized and large companies. We have seen some divergence between the US and Europe, due to structural listing-related factors.
Maturing clinical portfolios, more frequent positive news and an increased investor population are the first positive signals observed in the sector after several months.
Our Biotech Barometer released earlier this month describes these encouraging trends around one of the most innovative sectors on Euronext.
Euronext’s Post-Listing Advisory team gives three pieces of advice for biotech executives in the current environment:
- Reinforce your local investor base to be resilient against asset reallocation trends
- Choose the right capital structure for your business, and consider the benefits of both dilutive and non-dilutive financing to allow you to match investors’ allocation trends
- Know your investors: take any opportunity to talk with them, anticipate their expectations and investment strategies, but also provide them with your own valuable and scientific read across the biotech sector