Week of July 18, 2025

The Week at a Glance:

• Markets Observe Minor Gains: Increases based on solid economic data and Q2 earnings were partially erased due to the Trump and Powell feud continuing

• Sarepta’s Negative News Week: The rare disease biotech had a tough news cycle capped off by saying it will not pull its Duchenne targeting gene therapy off the market despite a request from the FDA

• A Persistent Disconnect Between Fundraising and Deployment: The dichotomy between fund raising and deploying capital continues as private biotechs struggle to raise capital due to the lack of viable exit strategies today and despite investors sitting on ample dry powder

Markets Overview

• The S&P 500 and Nasdaq finished with gains of 0.6% and 1.5%, respectively, while the Dow finished down 0.1%

  • 83% of S&P 500 companies that have reported Q2 earnings so far have beat estimates

  • CPI rose 2.7% on an annual basis in June (up from 2.4% in May but in line with expectations), hinting that the tariffs may be beginning to impact inflation

  • Trump backtracked his rhetoric on firing Powell after his comments triggered equities to fall ~1% on Wednesday

Healthcare indices underperformed the broader market with the NBI and NYSE Arca Pharma Index finishing down 0.5% and 2.3%, respectively

Notable changes in share price:

• Sarepta Therapeutics (NASDAQ: SRPT): Shares ended down 22.6% after a series of adverse events, including the addition of a black box warning to Elevidys, layoffs impacting 500 employees alongside executive pay increases, disclosure of another patient death, and resistance to an FDA request to halt Elevidys sales

• Abbott Laboratories (NYSE: ABT): Stock finished down 6.3% after the Company lowered its 2025 annual revenue growth forecast from 7.5-8.5% to 7.5-8.0%, citing headwinds in its diagnostic business in China

Sources: Pitchbook, Biomedtracker, and CapIQ

Equity Markets

IPO Markets:

No companies completed IPOs last week.

One company filed an S-1:

• HeartFlow announced plans to raise $100.0M to accelerate both commercial and R&D activities for its AI-powered diagnostic platform, which creates 3D heart models to detect coronary artery disease more precisely 

24 companies in total remain in the queue, of which only four intend to raise more than $30.0M in proceeds:

Year-to-date, companies that have gone public in 2025 have had a median loss of 6.7%

Follow-On Offering Markets:

There were five completed follow-on equity offerings last week totaling $20.9M.

PIPE/RDO Markets:

• There were five PIPEs/RDOs last week totaling $176.1M, with notable deals including:

  • MEI Pharma, a clinical-stage oncology company, secured $100M via private placement to become the first publicly traded company on a national exchange to adopt Litecoin as a treasury reserve asset

  • Windtree Therapeutics, a clinical-stage biopharma developing oncology and cardiovascular therapies, raised $60M through a PIPE (with up to $140M in future proceeds) led by Build & Build Corp to fund a crypto‑treasury strategy

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M & A

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