Biopharma Funding Jumps 56% in September on Public Financing Surge, Mizuho Reports

Funding for the biopharmaceutical sector surged in September, reaching $13.0 billion, a 56% increase from the prior year and a 42% rise from August. The robust activity was primarily fueled by a significant uptick in public market financing, according to a Mizuho analysis of data from BioWorld.

Public Deals Drive Monthly Growth

The primary driver for the month was public-other financing, which soared 272% year-over-year and 75% month-over-month. This category accounted for 64% of the total capital raised in September, signaling strong investor appetite for publicly traded biopharma companies outside of traditional initial or follow-on offerings.

Venture funding, which Mizuho noted is particularly relevant for small and mid-cap biotech firms, also showed strength. Venture capital investments increased 74% from August and were up 21% compared to September of the previous year.

Year-to-Date and Quarterly Trends

On a year-to-date basis, the sector's funding momentum is even more pronounced. Through the first nine months of the year, biopharma companies have raised $89.1 billion, an 84% increase from the $48.3 billion raised during the same period in 2025. The most significant year-over-year growth drivers were:

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• Initial Public Offerings (IPOs): +281%
• Follow-on Offerings: +159%
• Public-Other Financing: +53%
• Venture Funding: +25%

For the third quarter, total funding reached $29.5 billion. While this marked a 15% sequential decrease from the second quarter's $34.5 billion, it represented a 57% increase over the third quarter of 2025. On a trailing twelve-month basis, total biopharma funding stood at $122.2 billion, up 92% year-over-year.

Market Context

The strong capital inflows occurred despite a tightening monetary policy environment. The Federal Reserve raised its benchmark interest rate by 25 basis points to a range of 3.75%-4.00% at its September meeting. According to CME FedWatch data from the end of September, markets were pricing in an 89% probability of at least one more rate hike before the end of the year, with further increases anticipated in 2027.