Healthcare Hits 100

2014 has been a great year for IPOs. And perhaps no sector has performed better than Healthcare.

We’ve written about this already – more than once, actually – but as we approach the end of 2014, the sector has hit yet another milestone. So let’s talk about healthcare one more time.

Last week, the year’s 100th healthcare IPO debuted on the market. 100 is a big number for any sector, but it’s particularly big for healthcare when you consider that 2013 saw only 53 deals. Not only has 2014 nearly doubled last year’s deal output for the sector, it has nearly matched the output of 2007 through 2012 combined.

And despite a relatively modest deal size, in terms of proceeds, 2014 still managed to be the most productive year of the century, with totals cresting above $11MM.

Back in August, we discussed what may have spurred the surge. In October we went broader and explored the global reverberations of healthcare’s deal explosion. Today, let’s look at the two micro-sectors within healthcare that are responsible for 75% of all the sector’s deals: biotech and pharma.

Biotech and pharma have combined to present 75 IPOs to the market in 2014, up from 45 in 2013 and from numbers in and even below the teens for the few years before. Both micro-sectors are booming, with pharma nearly tripling last year’s deals to hold a 42-33 lead over biotech. The obvious reason for this is the same as it was back in August: 2014 has been a great year for IPOs, and healthcare has been a major beneficiary of market conditions.

Additionally, these particular micro-sectors may also have benefited more than most from the JOBS Act.

As we’ve discussed in the past, the JOBS Act makes it easier for small companies to go public, and small is exactly what biotech and pharma companies tend to be, due to the nature of their work. They’re highly-specialized and focus on narrow corners of the market, i.e., regenerative medicine for bone diseases, or therapies for colon cancer, or products in the musculoskeletal segment of the marketplace, like Histogenics Corporation.

And what exactly is Histogenics? Just healthcare’s aforementioned 100th IPO.

For more information on recent IPO activity, visit Ipreo Ink.

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