Healthcare ECM Recovery?
During the ’14-15 Healthcare boom, the sector reached 32% of the total U.S. ECM fee pool, the highest level any sector attained during the last decade. Starting in ’16, boom turned into bust, and the Healthcare sector’s contribution fell by more than half to 15%. As biotech stocks have started recovering this year, the Healthcare ECM market has followed suit. Firms which went public during market peak are now taking advantage of this bounce-back, raising funds with a flurry of follow-on issuances. Many of these follow-on issuers replaced original IPO bankers like Deutsche Bank, RBC, and Credit Suisse with relatively new players like Cantor Fitzgerald and Evercore. Moreover, well-established sector specialists like Cowen and Leerink have become bookrunner powerhouses and now hold higher market shares than they did during market peak.