Investors anticipate a rebound in the U.S. biotech sector in 2026, with more companies expected to go public. Uncertainty lingers, but improvements in the policy environment have reduced fear of sudden shocks. Only 10 biotechs went public in 2025, down from 26 in 2024 and 93 in 2021.

Biotech stocks are gaining momentum among investors, with many predicting 2026 as a potential turning point. The SPDR S&P Biotech ETF ended 2025 up 33%, rebounding from early-year pressure. Late-stage pipelines are drawing investor attention, with a focus on companies in cancer, obesity, precision medicine, and respiratory diseases.

Total U.S. biotech IPO proceeds in 2025 were $1.6 billion, far below the $16 billion raised in 2021. Investors are seeking biotechs with drugs in mid-to-late-stage development to reduce risk. Capital inflows and lower interest rates could boost the sector, paving the way for stronger public market debuts.

Read more at Yahoo Finance: US biotech sector poised for 2026 rebound as IPO interest revives