What factors are helping pharmaceutical financing continue to heat up when three other companies file for IPOs?

Three more biopharmaceutical companies, Spruce Biosciences, Shattuck Labs and Kronos Bio, have filed for IPOs on Nasdaq.
California-based Spruce Biosciences plans to raise $86 million through an IPO to advance the company's development of drugs to treat congenital adrenal hyperplus (CAH).
most of the drugs currently used to treat congenital adrenal hyperplosy are steroids that affect the patient's adrenal glands.
and Spruce'stildacerfont, a non-steroidal drug, is currently undergoing Phase 2 clinical trials.
Spruce hopes to publish the latest results in the next 12-15 months.
in February, Spruce had just completed an $88 million round of B financing.
two other companies, Shattuck and Kronos, have applied for $100 million in IPO financing to advance the company's research and development of new cancer drugs.
Shattuck is developing a new agitant redirect checkpoint (ARC), and the company's main candidate drug, SL-172154, is currently conducting phase 1 clinical studies related to ovarian cancer, with preliminary data expected to be released in the second half of next year.
company's other drug candidate, SL-279252, is also undergoing Phase 1 clinical trials of advanced solid tumors and lymphomas.
June, Shattuck completed a $118 million round of B financing.
comes after Kronos, which is working on a new drug for "non-drugable" cancer targets, completed a $155 million financing in August.
disclosed that the financing of the IPO will be used to advance a phase 2/3 clinical trial of the company's candidate drug endospletinib and induced chemotherapy (IC) to treat acute myeloid leukemia (AML) in patients with NPM1 mutations.
, the funding will also advance phase 1/2 clinical trials of the drug KB-0742 for the treatment of advanced solid tumors.
As of today, 67 biotech and pharmaceutical companies have made IPOs on NASDAQ this year, more than the total of 47 IPOs in all of 2019, and the number of biotech and pharmaceutical companies that have landed on NASDAQ this year is expected to be significantly higher than last year as more companies have disclosed their IPOs recently.
why is it driving the rapid development of the pharmaceutical market? Bruce Booth, a partner at Atlas Ventures, summed up three reasons in an article published today in Forbes, Evolution Of The Biotech IPO Markets Markets Fromted To Booming.
first is that in the past few years, companies in the biotechnology and pharmaceutical sectors have been innovating and producing innovative drugs with great influence, and the market has naturally paid attention to them.
with advances in genetics and other fields, more results have been translated into high-quality medicines.
in recent years, cell therapy, gene therapy, precision medicine, and many other therapeutics have made tremendous innovations that will continue to attract capital attention.
second factor is that the depth of capital market has been strengthened and the form of corporate financing has become richer.
, hedge funds and even sovereign wealth funds are focusing on investments in biotechnology and medicine.
of capital markets has also created a favorable environment for IPOs of related companies.
In addition to the two points above, Bruce believes that the rise of the Promotion of Venture Financing Act and Crossover Round financing, passed in 2012, is also an important reason because they have found a more effective pricing process for IPOs and made financing smoother for the companies involved.
references: Evolution Of The Biotech IPO Markets From Busted To Booming. Retrieved September 22, 2020, from #73afc9cd6ae7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Retrieved September 22, 2020, from.