IPOs: A Window That Barely Opened

The biotech IPO market in 2024 was, in a word, restrained. Fewer than two dozen companies went public, continuing the post-pandemic slump that began in 2022. The optimism that surrounded the J.P. Morgan Healthcare Conference early in the year quickly gave way to reality: investors were still risk-averse, and the IPO window was more like a crack in the wall than a door to opportunity.

Companies that did go public faced a tough crowd. Many struggled to maintain momentum after debut day, with valuations dipping and investor enthusiasm waning. The backlog of biotech hopefuls waiting to go public remains long, but the message is clear—clinical-stage assets are king, and early-stage science needs more than promise to win over Wall Street.

M&A: Selective But Strategic

M&A activity mirrored the IPO landscape: cautious, but not dormant. The standout deal of the year was Novo Holdings’ $16.5 billion acquisition of Catalent, a manufacturing giant whose capabilities are critical to the future of biologics and cell therapies. This deal wasn’t just about scale—it was a bet on infrastructure and long-term capacity.

Another headline-grabbing acquisition came late in the year when Novartis scooped up Kate Therapeutics for $1.1 billion. Kate’s assets were all in preclinical development, but its focus on neuromuscular diseases and promising gene therapy platforms made it a compelling target. The deal underscored a key theme of 2024: early-stage science can still attract big pharma, but only if it’s truly differentiated.

Neuroscience, GLP-1s, and the Rise of Radiopharma

If 2023 was the year of cell and gene therapy, 2024 belonged to neuroscience and GLP-1s. Another Alzheimer’s drug crossed the FDA finish line, and the race to dominate the RSV vaccine market intensified. GLP-1 agonists, originally developed for diabetes, continued to make waves in obesity treatment—and beyond. Researchers explored their potential in cardiovascular health, liver disease, and even neurodegeneration.

Radiopharmaceuticals also gained traction, with several companies advancing targeted radiotherapies for cancer. The precision and potency of these therapies are drawing attention from investors and regulators alike, setting the stage for a new wave of oncology innovation.

Antibody-Drug Conjugates and Cell Therapies: Still Hot, Still Evolving

Antibody-drug conjugates (ADCs) remained a hot topic, with new approvals and expanded indications driving interest. These “guided missiles” of cancer therapy are becoming more refined, with better targeting and payload delivery. Meanwhile, cell therapies continued to evolve, with companies exploring off-the-shelf solutions and improved manufacturing techniques to reduce costs and expand access.

Looking Ahead: What Will 2025 Bring?

As we head into 2025, the biotech industry is still navigating a complex landscape. The downturn hasn’t fully lifted, and capital remains tight. But the science is strong, and the appetite for innovation is undiminished. Investors may be cautious, but they’re not uninterested—they’re simply more selective.

Expect continued focus on neuroscience, metabolic disease, and precision oncology. And perhaps, just perhaps, a few surprises that remind us why biotech remains one of the most dynamic sectors in the world.