ARTICLE | Finance

SPAC to the future: an old-time IPO alternative may be back to stay

How the once maligned SPAC has become a viable IPO option for top-tier biotechs

October 23, 2020 11:46 PM UTC

Investors and bankers believe specialist-backed SPACs could become a cyclical part of biotech’s fund-raising equation with some clear advantages over traditional IPOs for the right type of company. But for SPACs to be anything more than a fad, the first several deals will need to make money for everyone involved.

While special purpose acquisition companies (SPACs) have been around for decades and have their own niche market of specialized SPAC investors, the 2020 version of healthcare or biotech SPACs are not the same breed as the SPAC of 2005. ...