Despite the fact that 2019 was a big year for digital health initial public offerings after a quiet couple of years, biopharma companies continued to dominate the more than 76 IPOs filed last year, continuing a multi-year trend. A new eBook from MedCity News spotlights some of the more interesting deals and trends this year across digital health and biopharma.
A clutch of digital health companies splashed onto the public markets in 2019, reflecting the increased confidence in the long-term viability of these companies and the sector, such as chronic disease management business Livongo Health, health IT and data analytics company Health Catalyst and patient-intake technology company Phreesia.
A handful of healthcare companies saw their share price surge, such as 10x Genomics, a gene sequencing tech business, whose initial share price of $39 jumped from $52.75 on its debut in September to end the year at $76.25.
There were also some unicorns among the biopharma businesses such as Alector and Gossamer Bio.
The focus of the businesses behind these IPOs spanned a diverse range from organ transplant technology (TransMedics) to fertility benefits (Progyny) to teledentistry (SmileDirectClub). Companies also demonstrated considerable age differences. Phreesia, for example, started in 2005, while 89Bio, a company with a lead drug aimed at treating nonalcoholic steatohepatitis, or NASH, only launched last year.
Acknowledging the trend of pre-revenue biopharma companies listing on Nasdaq to advance their fundraising and commercialization efforts, NYSE changed its rules to accommodate these companies last year. Under the new provision, the NYSE adopted a discounted annual fee schedule for businesses with negligible revenue, as long as their global market capitalization is at least $200 million and meets other listing requirements.
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