Are SPACs Good Or Bad For Biopharma?

Special Purpose Acquisition Companies (SPACs) homed in on the biopharma industry in 2020, providing biotech companies with a faster and looser route to the public market. Is there a downside?

up and down arrows

To SPAC or not to SPAC? It is a question increasingly asked of promising, privately owned biotechs, as health care investment groups, hedge fund managers, former CEOs, financial gurus and celebrities rushed to bring a record number of SPACs into the public markets last year.

When SPACs go public, the money raised goes into a trust to be used for the acquisition of a target...

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