Biotech Quietly Leads IPO Market as Investors Await Anthropic

what happened

Barron's reports that the IPO market has been in a lull while investors wait for Anthropic to officially file its S-1 form. Biotech firms, however, have been active: five have gone public this month, and several have climbed sharply. Lycia Therapeutics priced its offering at $18, the top of its range, and raised $314 million. The shares closed Friday at $30, after reaching a peak of $36.49 during the session.

Other debuts also did well. City Therapeutics rose nearly 30% on its first trading day, October 16, and Retension Pharmaceuticals is up 27% since its October 9 listing, after upsizing its sale from 3.3 million to 3.8 million shares. Not every debut has held up. TRex Bio is down about 1% since its IPO, while Iambic Therapeutics, despite an 18% first-day gain, now trades more than 10% below its offer price. None of the five companies is profitable yet.

why it matters

Strong demand for biotech listings suggests investors still want early-stage companies, even as the broader IPO market waits. Renaissance Capital's Bill Smith said most issuers are holding off until volatility, the midterms and the Anthropic IPO are behind them. According to The Wall Street Journal, a draft Anthropic filing shows a loss of more than $80 billion in the first half of 2026, though over $70 billion of that is attributed to accounting charges, which may make some investors hesitant to pay a premium.

market impact

IPO market: demand concentrated in biotech, while broader listings face pressure from Anthropic IPO uncertainty

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