Biotechs test IPO market despite concerns over Robert Kennedy’s health role

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Trump nominee has caused concern in the industry due to his desire to reduce spending on medicines

Two drug developers are pressing ahead with public listings in the coming months despite fears that Robert F Kennedy Jr’s nomination as the top US health official will suppress biotech valuations, in a test of the market’s willingness for risk.Kennedy’s nomination as secretary of the US Department of Health and Human Services by president-elect Donald Trump has roiled biotech stocks, with shares of big pharma groups and other healthcare companies gyrating in the weeks since.

Kennedy’s nomination added uncertainty to what was a brightening picture for the biotech industry, which was expecting to benefit from falling interest rates and a less aggressive antitrust enforcer atop the Federal Trade Commission. So far this year, there have been 26 listings for biotech companies, raising a combined $4.3bn, after two slow years of issuance for the sector. But still the number of biotech IPOs is far behind the pandemic years, which generated a surge of investor interest.

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