2025 started with strong expectations for the biopharma sector, as several companies announced plans to go public early in the year. Maze Therapeutics was among the first, initiating its IPO just over a week into January and raising $140 million. This move appeared to signal a robust year for biotech IPOs, with four other companies quickly following suit.
However, after this initial activity, the market experienced a six-month pause in new offerings. The drought ended in August when LB Pharma completed its IPO. In total, eight biotechs went public in 2025—a notable decline compared to previous years: 19 IPOs in 2024, 13 in 2023, and 17 in 2022.
Michael Rachlin, Senior Managing Director at FTI Consulting’s Corporate Finance & Restructuring unit, commented on the importance of IPOs for drug developers. “A robust IPO market is very important for innovative drug developers to access capital to fund later-stage (more expensive) clinical trials and to give earlier investors exit opportunities,” Rachlin told BioSpace in an email.
Rachlin noted that since the pandemic-driven boom, investors have become more selective about where they put their money. “We are likely in/entering a more discerning IPO marketplace where drug innovators with proven, later-stage assets/programs will have the necessary support to go public,” he said. He added that despite this shift, IPOs remain essential for industry growth: “The development and commercialization of novel and innovative drugs will continue to be a cornerstone of health and wellness, and a robust IPO market will continue to be an important factor for drug innovators to access capital and liquidity.”
Maze Therapeutics’ debut on January 31 saw shares rise only slightly on opening day but gain over 150% by year-end. The company’s progress was driven by promising data from its lead candidate MZE782 for chronic kidney disease and phenylketonuria.
Metsera made headlines with its February offering that raised $316.2 million—well above its target—and drew attention due to strong clinical results from its obesity treatment pipeline. The company became the subject of a high-profile bidding war between Pfizer and Novo Nordisk before ultimately being acquired by Pfizer for around $9.8 billion.
Sionna Therapeutics followed closely behind Metsera with a $191 million raise focused on cystic fibrosis treatments. The company advanced two candidates targeting mutations in the CFTR protein.
China-based Ascentage Pharma raised $126.4 million in January to advance therapies for leukemia both domestically and internationally. Its lead asset lisaftoclax received regulatory approval in China during July 2024.
Aardvark Therapeutics also joined the early-year wave but fell short of fundraising expectations with $94.2 million raised; it continues developing assets targeting obesity through mechanisms distinct from established GLP-1 pathways.
After months without new offerings, LB Pharma revived activity with a September debut that brought in $285 million aimed at advancing antipsychotic treatments for schizophrenia and bipolar depression.
MapLight Therapeutics exceeded expectations with an October offering totaling $296.3 million to support development programs targeting Alzheimer’s disease psychosis, schizophrenia, and autism spectrum disorder.
Evommune closed out the year’s class of public debuts amid a federal government shutdown by leveraging Section 8(a) of the Securities Act to complete its New York Stock Exchange listing and raise $172.5 million for inflammatory disease research.
Despite hopes early in the year that biotech IPO numbers would rebound or match analyst predictions—such as William Blair’s forecast of 30 new listings—the actual tally reflected ongoing caution among investors regarding early-stage ventures.
