Biotech IR Blog by Our CEO and Founder, Laurence Watts.
June 11, 2025
How Often Are Public Biotechs Taken Private? (And Who Are the Top Backers of, and Advisors to, Such Transactions?)
A number of clients over the past few years – when biotech valuations have been in the dumps and the number of publicly listed biotechs trading below cash has reached triple digits – have half-heartedly floated the idea of taking their company private. Typically, they see their company as undervalued or mispriced by the market, and figure things would be easier if they were private. To be clear, none of my clients have ever been involved in a leveraged buyout. They’re just not that common.
Specifically, we could only find six examples of biotechs being taken private over the past three and a half years – compare that number to the 38 biotech IPOs between 2022-24 that raised more than $50 million. The six public-to-private transactions are listed below.
Leveraged-buyouts of biotechs 2022-June 2025
| Announcement Date | Biotech Taken Private | Ticker | Acquirer |
| Feb 21, 2025 | Bluebird Bio | NASDAQ: BLUE | Carlyle (Abingworth) and SK Capital |
| Oct 23, 2024 | Lumos Pharma | NASDAQ: LUMO | Double Point Ventures |
| Feb 26, 2024 | NGM Biopharmaceuticals | NASDAQ: NGM | The Column Group |
| Jul 12, 2023 | Liminal Biosciences | NASDAQ: LMNL | Structured Alpha (Thomvest Asset Management) |
| Jun 1, 2023 | Reunion Neuroscience | NASDAQ: REUN | MPM BioImpact |
| Aug 1, 2022 | Stealth BioTherapeutics | NASDAQ: MITO | Morningside Venture Investments |
Source: Pitchbook, New Street Investor Relations
What should be clear from the table above – which shows the companies that went private, when they did so, and who backed the transaction – is that is no single fund has been involved in more than one leveraged buyout (LBO) during the period in question. From this you could reasonably assume that taking biotechs private isn’t a core business for healthcare-dedicated funds. Each transaction seems to have taken place on its own merits and, one assumes, was measured against other alternative private investments that could have been made. For those biotechs thinking of going private, however, it’s good to know that the funds listed above have at least successfully completed the process.
Note: although Pitchbook classifies these public-to-private transactions as leveraged buyouts, it’s not clear that any actual leverage (debt) was involved.
How long do buyouts take to complete?
| Biotech Taken Private | Announcement Date | Completion Date | Time to Close |
| Bluebird Bio | Feb 21, 2025 | Jun 2, 2025 | 3 months, 12 days |
| Lumos Pharma | Oct 23, 2024 | Dec 12, 2024 | 1 month, 19 days |
| NGM Biopharmaceuticals | Feb 26, 2024 | Apr 5, 2024 | 1 month, 10 days |
| Liminal Biosciences | Jul 12, 2023 | Sep 26, 2023 | 2 months, 14 days |
| Reunion Neuroscience | Jun 1, 2023 | Aug 1, 2023 | 2 months |
| Stealth BioTherapeutics | Aug 1, 2022 | Nov 16, 2022 | 3 months, 15 days |
Source: New Street Investor Relations, company press releases
In terms of how quickly transactions can get done, the average time from deal announcement to completion for the six buyouts identified was 72 days. The fastest was NGM at one month and ten days, while the longest was Stealth BioTherapeutics, which took 3 months and 15 days to close.
Most buyouts were the conclusion to a strategic review process, which will have started well before the buyout announcement was made publicly. So, biotechs considering this path would need to factor that time in as well.
What kind of premium do buyouts offer?
| Biotech Taken Private | Takeout Offer | Premium Paid | IPO Price (Where Applicable) |
| Bluebird Bio | $3.00 in cash plus CVR (of up to $6.84) | -57.4% to 39.8% | $17.00 |
| Lumos Pharma | $4.25 in cash plus CVR (undisclosed in press release) | 7.6%* | N/A |
| NGM Biopharmaceuticals | $1.55 | 80%* | $16.00 |
| Liminal Biosciences | $8.50 | 135%* | N/A |
| Reunion Neuroscience | $1.12 | 43.1%* | N/A |
| Stealth BioTherapeutics | $0.375 | 43.9%* | $12.00 |
Source: New Street Investor Relations, * according to company press releases
Four of the six buyouts consisted of cash-only offers, while two of them (Bluebird Bio and Lumos Pharma) consisted of a cash payment plus contingent value rights (CVR).
CVRs are usually non-listed, non-transferable rights instruments that allow holders to participate in the future success of the company they just sold. Payments under a CVR are typically tied to a biotech hitting certain development or sales milestones. Given the uncertainty surrounding these events, the value of CVRs is highly subjective.
For the four cash-only bids, the average premium paid to shareholders was around 76% of the prevailing stock price before the deal was announced (we have used the premium cited in the buyout’s accompanying press release).
That would seem to compare favorably to the typical 10-50% premium paid in other industries. Note, however, that every biotech was taken private at a substantial discount to the price new investors paid at IPO (where applicable).
Who are the top advisors for biotech buyouts?
| Biotech Taken Private | Financial Advisor to Biotech | Financial Advisor to Acquirer |
| Bluebird Bio | Leerink | Bourne Partners |
| Lumos Pharma | Piper Sandler | N/A |
| NGM Biopharmaceuticals | Guggenheim Securities | N/A |
| Liminal Biosciences | BMO Capital Markets | Langstaff & Co. |
| Reunion Neuroscience | Oppenheimer | N/A |
| Stealth BioTherapeutics | Houlihan Lokey Capital | N/A |
Source: Company press releases
From the table above, much like the table of financial backers earlier, you can see that no financial institution appears more than once as a biotech’s advisor during a company buyout. What you can see, however, is a number of reputable boutique healthcare banks like Leerink, Piper Sandler, Guggenheim, BMO, and Oppenheimer.
What was special about each of these biotechs?
| Biotech Taken Private | Rationale for Buyout |
| Bluebird Bio | “…as our financial challenges mounted, it became clear that securing the right strategic partner was critical to maximizing value for our stockholders and ensuring the long-term future of our therapies. After an extensive review process, this acquisition represents the best path forward – maximizing value for stockholders and bringing significant capital, commercial expertise, and a commitment to provide more patients the opportunity to benefit from potentially transformative gene therapies,” said Andrew Obenshain, current CEO of Bluebird Bio. |
| Lumos Pharma | Following a thorough review of financing and strategic alternatives, Lumos Pharma’s Board of Directors (the “Board”), with the assistance of the Board’s legal and financial advisors, unanimously determined that the acquisition by DPV is in the best interests of all Lumos Pharma stockholders… – Press release. In addition, Lumos Pharma announced that the Company and the Food and Drug Administration (“FDA”) are aligned on the Company’s final Phase 3 trial design which will consist of a global, multi-site, double-blinded, placebo-controlled trial with two cohorts randomized 2:1 to 1.6 mg/kg/day oral LUM-201 or daily placebo, each on treatment for 12 months… – Press release. |
| NGM Biopharmaceuticals | “We conducted a thorough review of our financial and strategic alternatives, including remaining a publicly held company, with particular focus on NGM Bio’s ongoing need for significant additional funding. Based on this review, we believe that this negotiated transaction for Purchaser to acquire NGM Bio is in the best interest of the Unaffiliated Stockholders,” said Suzanne Sawochka Hooper, an independent member of the Board and Chair of the Special Committee. Purchaser and Merger Sub are affiliates of The Column Group, LP (together with certain of The Column Group, LP’s affiliates, the “TCG Stockholders”), NGM Bio’s longest and largest stockholder, holding approximately 26% of NGM Bio’s outstanding shares… – Press release. |
| Liminal Biosciences | “After an extensive process led by a special committee comprised of disinterested and independent directors, we are pleased to have agreed terms on a transaction with SALP that has the full support of the Liminal BioSciences board. The transaction will deliver immediate value and liquidity to our minority shareholders at a substantial premium,” said Bruce Pritchard, Chief Executive Officer of Liminal BioSciences. |
| Reunion Neuroscience | “We believe that this all-cash transaction maximizes value and is in the best interest of our shareholders,” said Greg Mayes, Reunion President and CEO. “We are thrilled that MPM recognizes the value and differentiation of our clinical pipeline and look forward to working with them to bring this transaction to a close for the benefit of Reunion’s shareholders.” “MPM BioImpact is excited to partner with Reunion and for the opportunity to develop next-generation solutions for underserved mental health conditions,” added Ansbert Gadicke, Managing Partner, MPM BioImpact. “This transaction reflects MPM BioImpact’s strategy of investing in breakthrough science and innovative products that can address the world’s greatest unmet medical needs.” |
| Stealth BioTherapeutics | The Company’s Board, acting upon the unanimous recommendation of a committee of independent and disinterested directors established by the Board (the “Special Committee”), approved the Merger Agreement and the Merger. The Special Committee negotiated the terms of the Merger Agreement with the assistance of its independent financial and legal advisors… – Press release. |
Source: Company press releases
Looking closely at the six examples we found of biotechs being taken private, none were exactly happy endings. As mentioned before, the three that had traditional IPOs (Bluebird, NGM, and Stealth) were eventually taken private well below their IPO price.
Most involved an existing shareholder doubling down on their investment and underwriting the buyout. All were the result either of a review of strategic options, and/or the conclusion of a committee of independent directors.
Conclusion
- While a number of banks and investors have experience taking public biotechs private, there are no clear leaders in either category.
- The number of biotechs being taken private each year is small – far fewer than the number of reverse mergers and IPOs completed each year, for example.
- While they are typically conducted at an above-average premium to the prevailing stock price, they generally take place below the company’s IPO price (signaling this was not a happy ending for public investors).