What Are Your Thoughts Around The Unprecedented Growth Of Biopharmas Going Public During The Pandemic?

THE LAST FEW YEARS HAVE BEEN A BOON FOR BIOTECH. But because of all the capital raised in the last few years, companies may not need to raise as much fresh capital going forward. In fact, Moderna and others have announced stock buybacks. In addition, trading volumes for many companies are somewhat low, begging the question, “Are we in a bubble?” A few years ago, Merck’s market cap was higher than that of the entire industry combined. Today, one biotech company has a market value greater than Merck’s. Predictions are hard, but compared historically, many companies seem priced to perfection.

DENNIS PURCELL, a founder and senior advisor of Aisling Capital, has completed over 200 transactions and supervised over $15 billion in ife science industry financing and advisory assignments.