Here comes a test of the IPO window

Biotech’s two-month paucity of IPOs could come to an end this week, with a pair of companies expected to price their shares and give us all a miniature update on investor sentiment.

First is Satsuma Pharmaceuticals, a company with a late-stage migraine treatment and a plan to raise $80 million at a roughly $260 million valuation. Then there’s SpringWorks Therapeutics, a Pfizer-founded drug developer aiming to raise about $130 million at a valuation above $700 million.

They’d mark the 30th and 31st IPOs in a year that has been something of a mixed bag for biotech debutantes. The median 2019 biotech IPO is up more than 10% from its debut, but that figure glosses over the sinking fortunes of some companies that came in with high private valuations. Meanwhile, according to a recent survey from Cowen, investors are losing interest in buying into biotech offerings.