2/25/2021 5:20:32 PM | less than a minute read

SPACs are an Increasingly Attractive Option for Biotech Companies

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Jeremy D. Glaser

Member / Co-Chair, Venture Capital ＆ Emerging Companies Practice

Get in touch

Jeremy D. Glaser

Member / Co-Chair, Venture Capital ＆ Emerging Companies Practice

Biotechs generally need access to a lot of capital in order to bring their therapeutics to market. The traditional IPO route was the classic way a Biotech was able to access the public market. Today there is another option - a de-SPAC merger with a SPAC. There are many reasons to choose one approach over the other - valuation, cost of capital, dilution, etc. but now Biotechs looking to go public have another way to do it. Our client DermTech is a great example of a very successful healthcare SPAC.

Biotechnology startups can increasingly go public on their own terms as investors and blank-check companies clamor for access to the hottest new drugmakers.

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