Reverse mergers surge as biotech firms seek public listings via shell companies

Reverse mergers, once dismissed, are now a common route for biotech startups to gain a public listing by merging with shell companies.

Data from JB Strategy Partners shows roughly two dozen such deals have been announced this year, more than double the total seen in 2025.

The surge is driven by biotech's cash-intensive needs and a flow of drug candidates from Chinese laboratories, offering a fast path to market.

Deal experts caution that the pool of quality shell companies may be insufficient to meet growing demand, raising questions about the model's durability.