Aktis Oncology Breaks the IPO Drought: First Biotech of 2026 Raises $318 Million

The biotech IPO market just received a major vote of confidence. Aktis Oncology, a clinical-stage company developing radiopharmaceutical cancer treatments, raised $318 million in the first biotechnology initial public offering of 2026—upsizing its deal after pharmaceutical giant Eli Lilly stepped in with a $100 million anchor investment. The successful debut signals that investor appetite for biotech risk may finally be returning after two years in the wilderness.

Aktis priced 17.65 million shares at $18 each, above its initial $15-$17 expected range, and shares opened higher on their first day of trading. For an industry that saw IPO activity collapse to a decade low in 2024 before only modestly recovering in 2025, the strong reception marks a potential turning point.

The Radiopharmaceutical Opportunity

Aktis occupies one of the hottest spaces in cancer drug development: radiopharmaceuticals, which use radioactive isotopes to deliver targeted radiation directly to tumor cells. Unlike traditional radiation therapy, which damages healthy tissue alongside cancer, radiopharmaceuticals seek to deliver radiation precisely where it's needed.

The approach has gained significant momentum following Novartis's success with Pluvicto, a radiopharmaceutical for prostate cancer that generated approximately $1.5 billion in sales in 2025. Big Pharma has taken notice: AstraZeneca acquired Fusion Pharmaceuticals in 2025, and Bristol-Myers Squibb purchased RayzeBio for $4.1 billion late last year.

"Radiopharmaceuticals represent the next frontier in precision oncology. The ability to deliver tumor-killing radiation with antibody-like specificity while sparing healthy tissue could transform treatment for multiple cancer types."

— Dr. Sandip Patel, Chief Medical Officer at Aktis Oncology

Eli Lilly's Strategic Bet

The most notable aspect of Aktis's IPO wasn't the fundraise itself—it was Eli Lilly's decision to anchor one-third of the deal with a $100 million investment. The Indianapolis-based pharma giant has emerged as one of the industry's most aggressive acquirers, building positions in promising biotechs that could become acquisition targets later.

Lilly's participation serves multiple purposes:

• Strategic optionality: The investment gives Lilly insight into Aktis's development and first-mover advantage if the company becomes an acquisition target.
• Pipeline diversification: While Lilly's obesity franchise dominates headlines, the company continues building its oncology portfolio for long-term growth.
• Market signaling: Lilly's participation de-risks the investment for other buyers, helping ensure a successful offering.

What Aktis Is Developing

Aktis's lead program, AKTIS-001, targets cancers expressing the HER2 receptor—the same target as Genentech's Herceptin. But unlike antibody therapies, Aktis's approach attaches a radioactive payload to deliver tumor-destroying radiation directly to HER2-expressing cells.

The company's technology platform, which it calls "Precision Radiopharmaceuticals," has several potential advantages:

• Broader applicability: The approach could theoretically work against any tumor with an identifiable surface target.
• Complementary to existing treatments: Radiopharmaceuticals can potentially be combined with chemotherapy, immunotherapy, and other treatments.
• Resistance mechanism: Tumors that develop resistance to traditional targeted therapies may remain vulnerable to radiopharmaceuticals.

Aktis plans to use IPO proceeds to advance AKTIS-001 through Phase 2 clinical trials and to expand its pipeline of radiopharmaceutical candidates.

The Biotech IPO Comeback

Aktis's successful debut continues a tentative recovery in biotech IPO activity. After just 24 biotech IPOs in 2024—the lowest since 2012—the pace picked up modestly in 2025 with 47 offerings. But quality has improved more than quantity: the average 2025 biotech IPO has returned approximately 15 percent, compared to negative average returns in 2023 and 2024.

Several factors are supporting the recovery:

Big Pharma's M&A Appetite

With patent cliffs looming, major pharmaceutical companies are actively acquiring biotech targets. This creates a natural exit pathway for IPO investors, reducing the perceived risk of holding biotech stocks.

Improved Market Conditions

The XBI, the benchmark biotech ETF, rose 33 percent in 2025 after two difficult years. Stronger underlying market conditions make it easier to complete IPOs at attractive valuations.

Rate Cut Expectations

Biotech stocks are particularly sensitive to interest rates because their value depends heavily on discounting future cash flows. Expectations for continued Fed rate cuts in 2026 support risk appetite for early-stage companies.

What Investors Should Know

While Aktis's debut is encouraging, individual investors should approach biotech IPOs with appropriate caution:

• High failure rates: The majority of drug candidates fail in clinical trials. Investing in single biotech stocks means accepting the possibility of total loss.
• Long timelines: Even successful drugs take years to reach the market. Aktis's lead program is in early-stage development with years of trials ahead.
• Volatility: Biotech stocks can move 30-50 percent in a single day based on clinical trial results, regulatory decisions, or M&A speculation.
• Lock-up periods: Insiders and anchor investors face lock-up periods restricting their ability to sell, which can create selling pressure when these periods expire.

The IPO Pipeline

Aktis is just the first of potentially dozens of biotech IPOs in 2026. The backlog of venture-backed companies that postponed offerings during the 2023-2024 downturn remains substantial. Companies in hot areas like radiopharmaceuticals, gene therapy, and obesity drugs are likely to lead the charge.

For the biotech sector, Aktis's successful debut provides a template: strong science, strategic partnerships with Big Pharma, and realistic pricing can still attract investor capital. Whether the broader IPO recovery continues will depend on market conditions, clinical trial results from recently public companies, and continued M&A activity providing exit opportunities.

For now, the drought appears to be breaking. After two years of hibernation, biotech IPOs are back—and investors are once again willing to bet on the promise of breakthrough therapies.