The Burrill Report

U.S. life sciences companies raised more than $1 billion in capital in the third sizzling week for biotech offerings. Six companies raised $327 million through initial public offerings on U.S exchanges and eight companies raised $717 million in follow-on offerings.

Seventeen therapeutics developers, 1 diagnostic company, and 2 medical device companies have completed initial public offerings in the United States since the beginning of 2014 raising a total of $1.3 billion. At the same time, 32 companies, including 11 newly public in 2013, raised almost $2.5 billion in follow-on offerings.

Excluding Pfizer animal health spin-out Zoetis’ IPO, only three life sciences companies completed IPOs during the same period in 2012 raising $160 million and 22 companies completed follow-on offerings raising $1.8 billion.

As a group, the 20 companies that completed IPOs since the beginning of 2014 were up 23.4 percent from their IPO price on February 14. Ten companies were above the IPO price, two had no change, and eight were trading below the IPO price.

Investors have favored companies that offer cutting edge technologies. RNAi-based drug developer Dicerna Pharmaceuticals was the biggest gainer, trading 160 percent above its offering price. Rare genetic disease drug developer Ultragenyx had gained 109.5 percent in the two weeks since going public, and shares of Auspex Pharmaceuticals have almost doubled in the 10 days since its IPO. Eagle Therapeutics, which makes improved versions of existing drugs, was the worst performer of the group, dropping 14 percent after beginning trading.

The strong performance of biotechnology in the markets shows no sign of abating either. The Burrill Biotech Select Index is up 15.92 percent since the beginning of the year, after gaining 61.5 percent in 2013. The surge is driven by improved fourth quarter and 2013 earnings for many of these companies, rising sales, and increasing regulatory approvals for therapies being developed by the sector. Though there is concern pricing concern, many of these companies are focusing on addressing serious unmet needs and rare diseases for which there are few or no options currently available.


February 17, 2014
http://www.burrillreport.com/article-life_sciences_ipos_keep_on_coming.html