A New Pulse in Biotech IPOs Starts With Oncology

Aktis Oncology’s planned Nasdaq debut, backed by Eli Lilly, suggests investors are cautiously returning to targeted cancer innovation

12 Jan 2026

Wall Street is tentatively reopening the door to biotechnology, with cancer research emerging as the first area to test renewed investor interest after a prolonged slowdown in new listings.

In early January, Aktis Oncology filed to list on Nasdaq, seeking to raise about $318m at a valuation of roughly $945m. The filing stands out in a market that has seen few biotech initial public offerings over the past two years. Confidence in the deal was bolstered when Eli Lilly agreed to act as a cornerstone investor, committing about $100m to the offering.

The move is being closely watched as a signal of whether capital is ready to return to early-stage drug development. Aktis is focused on radiopharmaceuticals, a form of targeted cancer treatment that delivers radiation directly to tumours. The approach has attracted growing attention from large drugmakers and investors looking for therapies that combine scientific novelty with clearer clinical applications.

For established pharmaceutical groups, backing young biotech companies offers a way to gain exposure to new technologies without the expense and risk of full acquisitions. Anchor investments, as one analyst told Reuters, have become a common way for large companies to stay close to promising research. The strategy has gained importance as many of the industry’s top-selling drugs face patent expiry later this decade, leaving oncology as a key source of future growth.

The timing reflects a cautious shift in sentiment. Biotech stocks surged during the pandemic, when easy funding and demand for vaccines lifted valuations, but enthusiasm faded quickly as interest rates rose and investors retreated from risk. Recent filings suggest that funding is returning, but in a more selective form. Investors are prioritising companies with defined development plans, credible data and narrower ambitions.

Even larger groups are adjusting to the new environment. Moderna and others have emphasised the need to expand and diversify their pipelines beyond flagship products, highlighting broader pressure across the sector to manage long-term growth.

Risks remain substantial. Public markets have become less forgiving, and regulatory setbacks can quickly undermine valuations. Yet the Aktis offering suggests the freeze on biotech funding may be easing.

If the listing succeeds, other oncology-focused companies may attempt to follow, reopening a path to public capital that has been largely closed. For now, the recovery appears measured rather than exuberant, with cancer research leading the way back.