Special purpose acquisition companies (SPACs) are resurging as a virtually hassle-free alternative to initial public offerings (IPOs). They’ve been around for years, but are just now becoming a factor for biotech.
This year has been a record year for Biotech initial public offerings (IPOs), with total deal value already up by 58% compared with all of 2019.
New SPACs are getting announced every day, including in biotech: so much so that serial entrepreneur Mike Gilman tweeted that “it’s raining SPACs” – a sentiment that captures the frenzied downpour of activity.
Two of biotech’s biggest trends — the rise of SPACs and the Scrooge McDuck piles of cash suddenly available to a life sciences company on New York trading floors — converged late Wednesday in one of the largest life sciences SPAC offerings yet: $385 million.