Preclinical IPOs attracting big money, but yet to see exponential growth of clinical peers

An analysis of preclinical IPO performance since the window opened eight years ago shows the companies have done about as well as their clinical peers. What’s missing are standout examples of explosive growth, though those could be around the corner as the cutting-edge technologies driving some of the excitement begin to mature.

The willingness of buysiders to invest in preclinical companies is a relatively recent phenomenon. Only 55 preclinical biotechs have gone public on NASDAQ, with 50 of those offerings occurring since 2013, according to BioCentury’s BCIQ database...