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Biotech is developing a unicorn problem.

Drug developers have grown their horns thanks to a recent boom in venture capital, a virtuous cycle in which investors poured millions into months-old startups with the promise of lucrative initial public offerings or big-ticket buyouts. But for many, going public at a multibillion-dollar valuation just isn’t feasible in the short term. And returning to the well of venture capital would likely require selling new shares at a price below the last ones, a prospect investors dread.

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