It's not often the London Stock Exchange plays host to a successful float on the main market for a biotech company. Last year's Circassia (CIR) IPO raised £200m for the allergy specialist, making it the biggest biotech fundraising for nearly a decade. PureTech (PRTC) - which develops various health products using next-generation and consumer-friendly technology - has raised close to half that, handing it a market capitalisation £364m, which suggests London's perception of the sector may be changing.
Many investors had their fingers burnt during the last biotech bubble in the late 1990s and early 2000s. But companies - particularly those listed on the US exchanges - are finding it increasingly easy to raise money, sparking new fears over a fresh bubble. Circassia was able to raise an additional £275m in May this year to fund its acquisitions of Swedish outfit Aerocrine and respiratory-focused company Prosonix.