The Burrill Report

The IPO market continued to steam ahead with molecular diagnostics company Veracyte completing its initial public offering at the end of October. It was the sixth life sciences company to complete an IPO in the month, with another dozen entering the queue. In total, forty five life sciences companies have gone public so far this year in the United States, raising a total of $6.4 billion in 2013.

Veracyte raised $65 million, selling 5 million shares at $13 a share. The offering was upsized by 300,000 shares and priced at the low end of its $13 to $15 target range. Veracyte has commercialized a thyroid cancer test that uses gene expression analysis to help doctors make informed treatment decisions at an early stage in patient care to help avoid unnecessary invasive procedures.

As a group the 45 offerings are up an average of 41.4 percent since their IPOs. In sum they have raised 9.6 percent more than the amount they had planned to raise, but despite a flurry of pricings in the third quarter of 2013 that were above the target range, on average companies had to price their offerings 12.7 percent below the midpoint of their average target range.

Therapeutics companies represent the leading performers among the group with the 34 companies completing IPOs in the United States since the beginning of 2013 up an average of 49 percent. Cancer drug developer Insys Therapeutics is the top performer with shares up almost 400 percent since the company completed an IPO in May.

In October, three companies, MacroGenics, Veracyte, and medical device maker LDR Holdings priced within their target range. Three companies—ADMA Biologics, Aerie Pharmaceuticals, and Fate Therapeutics—priced below their target range.


November 01, 2013
http://www.burrillreport.com/article-life_sciences_companies_up_41_percent_since_ipos_in_2013_.html