Graduation Year


Date of Submission


Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

Ben Gillen

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Rights Information

2023 Maria Izabella V Sakoda


The purpose of this paper is to understand the impact of firm characteristics (Therapeutic Focus, Treatment Type, and Clinical Stage at IPO) on post-IPO firm performance. A clearer understanding of firm characteristics and their nuances are crucial for potential investors as early-stage biotech companies are unable to be valued using traditional metrics. The sample studied biotech IPO classes from 2018-2021 and used firm returns 1-year post IPO as a proxy for firm performance. Results show that Therapeutic Focus and Clinical Stage at IPO were not significant predictors of post-IPO performance. Treatment Type, however, was a significant factor in post-IPO firm performance. Subsequent analyses were conducted to observe how each firm characteristic subcategories performed relative to others. No differences emerged between Therapeutic Focus and Clinical Stage subcategories, demonstrating that holding other firm characteristics constant, firm performance will not differ between subcategories. There were significant differences between Treatment Type subcategories. The outcomes can be explained by the efficient market hypothesis, optimistic investor sentiment during “hot” IPO markets, and strong data catalysts or FDA approvals driving performance.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.