Week of February 27, 2026

The Week at a Glance:

• Iran–US Conflict: Geopolitical tensions escalated over the weekend after the US (alongside Israel) launched strikes on Iran and Iran retaliated across the region. Markets are assessing the risk of broader escalation, with oil prices jumping on fears of potential supply disruptions, particularly if transit through key shipping routes is affected; the ultimate impact remains dependent on how the situation develops in the coming days

• Strong Week for the Healthcare Equity Issuance: Generate Biomedicines’ $400M IPO, the largest biotech IPO raise in two years, and ~$620M of follow-ons marked a positive sign that the window for healthcare issuance remains open

• CAR-T Remains a Strategic Focus: Gilead announced a $7.8B acquisition of Arcellx, securing full rights to its lead BCMA-directed CAR-T therapy for multiple myeloma currently in a pivotal Phase 2 study. The transaction underscores large pharma’s sustained conviction in CAR-T as a core modality and follows closely after Lilly’s acquisition of Orna Therapeutics, reinforcing continued strategic investment in next-generation cell therapies

• DNB Carnegie | Back Bay is pleased to present the 10th Annual Nordic-American Healthcare Conference in New York, March 25-26, 2026: Investors, there is still time to join us at our annual healthcare equity event where more than 25 top US and Nordic healthcare companies will present. Registration is open and meetings are now being booked.

  Learn more: Nordic-American Healthcare Conference

Markets Overview

The S&P 500, Nasdaq, and Dow were down (0.4%), (1.0%), and (1.3%), respectively

• Risk sentiment weakened as AI-related anxiety hit tech, while renewed concerns around private credit added another layer of caution

• Hotter-than-expected inflation at the wholesale level (PPI) reinforced the view that the Fed may need to keep rates higher for longer (January PPI rose +0.5% m/m vs. +0.3% expected)

The NBI and NYSE Pharma Index were up 1.0% and 1.9%, respectively

Notable changes in share price:

• Sarepta Therapeutics (NASDAQ: SRPT): Shares declined ~10.0% as CEO Doug Ingram announced he will be stepping down – ending his tenure at the Duchenne muscular dystrophy biotech due to regulatory controversy following the death of two patients last year

• Arcellx (NASDAQ: ACLX): Stock jumped 77.5% after Gilead agreed to acquire the company for $115/share in cash (plus a $5 CVR tied to sales milestones), valuing the deal at up to ~$7.8B and marking a 68% premium to Arcellx’s 30-day VWAP

Sources: Pitchbook, Biomedtracker, and CapIQ

Equity Markets

One company completed an IPO last week:

• Generate Biomedicines, Inc. (NASDAQ: GENB) raised $400.0M to advance its generative biology platform, including completion of two Phase 3 trials (SOLAIRIA-1 and SOLAIRIA-2) of GB-0895, an AI-designed anti-TSLP antibody, in severe uncontrolled asthma, continued Phase 1b development of GB-0895 in COPD, and advancement of additional early-stage oncology programs

No companies filed an S1

All 24 additional companies in the IPO queue are pursuing raises below $40M

IPOs priced in 2025 and 2026 have generated a median and average return of 1.6% and 19.2% YTD, respectively – with half of newly public listed companies trading above their offer price

After-Market Performance by Stage

• Clinical-stage after-market performance (N=15): 34.8% (average), 6.7% (median)

• Commercial-stage after-market performance (N=24): 14.6% (average), (0.7%) (median)

After-Market Performance by Sector

• Biopharma (N=17): 20.8% (average), 0.9% (median)

• MedTech (N=23): 18.1% (average), 1.6% (median)

Follow-On Offering Markets:

There were four follow-on equity offerings totaling $619.8M last week, including:

• Palvella Therapeutics, Inc. (NASDAQ: PVLA) raised $200.0M to support development of its QTORIN platform for serious rare skin diseases and vascular malformations, including QTORIN rapamycin (3.9% rapamycin anhydrous gel) in microcystic lymphatic malformations (Phase 3), cutaneous venous malformations, and clinically significant angiokeratomas

• Vir Biotechnology, Inc. (NASDAQ: VIR) raised $150.0M to support its clinical-stage portfolio in infectious diseases and oncology, including tobevibart + elebsiran for chronic hepatitis delta (Phase 3 ECLIPSE trials) and multiple PRO-XTEN dual-masked T-cell engagers targeting validated solid tumor antigens, including VIR-5500 (PSMA-targeting) in metastatic prostate cancer (Phase 1)

• Bicara Therapeutics Inc. (NASDAQ: BCAX) raised $150.0M to support regulatory filing and commercial launch preparation for ficerafusp alfa, a first-in-class bifunctional antibody combining an EGFR-directed monoclonal antibody with a TGF-β–binding domain, in head and neck squamous cell carcinoma

• Zura Bio Limited (NASDAQ: ZURA) raised $125.0M to support development of its pipeline of dual-pathway antibodies for autoimmune and inflammatory diseases, including tibulizumab (ZB-106), a bispecific antibody neutralizing IL-17A and BAFF, in hidradenitis suppurativa (Phase 2 TibuSHIELD) and systemic sclerosis (Phase 2 TibuSURE)

PIPE/RDO Markets:

There were no PIPEs/RDOs last week

Licensing

M & A

Venture Financing

CONNECT with the Authors >>