Davis Polk partner Yasin Keshvargar discussed the recent uptick in capital markets deal activity in the biotech space and the outlook for the IPO market with the Financial Times.

“There’s a good backlog of biotechs who didn’t go public over the past year or so who are sharpening their pencils again,” Yasin said. He added that although an increase in biotech deals is a positive sign for those hoping for a broader market rebound in other sectors, it is “not directly transferable.”

“Both biotech and non-biotech IPOs benefit from a lot of the same underlying economic circumstances . . . [but] there are some specific biotech factors such as increased M&A activity in the space, and enthusiasm from specialist biotech investors who are key buyers,” Yasin explained.

US biotech fundraising boom ends 2-year deal drought,” Financial Times (February 12, 2024) (subscription required)