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Biotech IPOs Defy Government Shutdown, Potential for Biggest Week in Years
Despite a partial federal government shutdown, the stage is set for a potentially landmark week for initial public offerings, especially within the biotechnology sector. The shutdown, triggered by lapsed government funding this past Saturday, has closed non-essential agencies – including the Securities and Exchange Commission (SEC) – which typically reviews and approves IPO filings.
house Speaker Mike Johnson indicated on Meet the Press that a Senate-passed funding bill could be voted on by the House of Representatives as early as Tuesday, offering a potential swift resolution. However, until the government resumes operations, the SEC will not process new or pending registration statements, creating a unique challenge for companies hoping to go public.
According to IPO research firm Renaissance Capital, as many as eight companies across all sectors are currently slated to launch IPOs this week. If all proceed, it would represent the most active week for IPOs as 2021, when 397 companies raised $142.4 billion. A notable portion of this potential surge comes from the biotech industry, with Eikon Therapeutics, Veradermics, AgomAb Therapeutics, and Spyglass Pharma all poised to enter the public market.
Crucially, these four biotech companies may still move forward with their IPOs thanks to proactive filings. The SEC issued a notice of effectiveness for each company late Friday, prior to the shutdown. This declaration confirms that the registration statements meet all legal and regulatory requirements, effectively clearing the path for the offerings to proceed.
while 2025 saw 202 companies go public, raising a total of $44 billion – a four-year high – Renaissance Capital’s 2026 outlook projects continued growth. The firm anticipates between 200 and 230 IPOs this year, potentially raising between $40 billion and $60 billion, driven by stabilizing macroeconomic conditions, cooling inflation, and declining interest rates.
However, industry experts caution against expecting a return to the frenzied IPO activity of 2020 and 2021. “The robust IPO markets of 2020 and 2021 were not normal,” noted a partner at Cooley. “We’re seeing a progressive increase, particularly around the J.P.Morgan healthcare Conference each January,” where Aktis Oncology launched the first biotech IPO of 2026. Eikon, Veradermics, SpyGlass, and AgomAb strategically timed their registration statement filings to coincide with this influential conference, updating their filings last week with preliminary financial terms.
The government shutdown does present a workaround, albeit a risky one. Section 8(a) of the Securities Act allows a registration statement to become effective 20 days after filing, even without SEC review. Though, a shareholder at Polsinelli cautioned that this path is generally avoided. “If a company starts selling shares and the SEC later finds a problem with the prospectus, the company could face enforcement action and lawsuits,” they explained. Companies considering this option are typically those with a high degree of confidence in their filings, having already addressed SEC concerns.
Indeed, two biotechs – MapLight Therapeutics and Evommune – utilized this Section 8(a) rule during the 43-day government shutdown last fall. While considered a “tactic of last resort,” experts predict that further shutdowns could prompt more companies to explore this avenue, albeit in limited numbers.
At least one company has already navigated the current shutdown to go public. Polaryx Therapeutics launched a direct listing on Monday, a process that still requires SEC approval of the registration statement, which was granted before the shutdown. Unlike a traditional IPO, a direct listing does not
