All Clarivate websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.

More information on our cookie policy.

BioWorld. Link to homepage.

Clarivate
  • BioWorld
  • BioWorld MedTech
  • BioWorld Asia
  • BioWorld Science
  • Data Snapshots
    • BioWorld
    • BioWorld MedTech
  • Special reports
    • Aging
    • Artificial intelligence
    • Coronavirus
    • IVDs on the rise
    • Top Biopharma Trends of 2021
    • Top Med-tech Trends of 2021
    • Premium reports
      • BioWorld Financings Reports
      • Disease Incidence & Prevalence Summaries

BioWorld. Link to homepage.

  • Sign In
  • Sign Out
  • My Account
Subscribe
BioWorld - Friday, August 19, 2022
Home » Blogs » BioWorld Perspectives » 2010-12 Biotech IPOs Not Performing THAT Bad. Really.

BioWorld Perspectives
BioWorld Perspectives RSS FeedRSS

BioWorld

2010-12 Biotech IPOs Not Performing THAT Bad. Really.

March 12, 2012
By Trista Morrison
No Comments

What a difference two weeks makes. When I was researching last week’s BioWorld Insight cover – about how emerging biotech Verastem Inc., mature biotech Ironwood Pharmaceuticals Inc. and specialty pharma firm Clovis Oncology Inc. shared some surprising similarities in how they approached their initial public offerings – I put together a chart that showed aftermarket performance for the entire 2010-2012 biotech IPO class was about flat.

I was all ready to blog about how that’s better than I would have guessed, given the negative press we tend to hear about IPOs and the market in general. Then Monday morning brought implosions of two biotechs on my list: Anthera Pharmaceuticals Inc., which halted a Phase III trial of acute coronary syndrome drug varespladib for futility, and Tranzyme Pharma Inc., which saw ulimorelin fail a Phase III gastrointestinal recovery trial.

I guess those are the breaks in biotech; wait a day to post your blog and everything changes. So I reanalyzed the chart, and guess what? Now the 2010-2012 biotech IPO class is trading down about 5 percent, and honestly, that’s still not as bad as I expected it would be.

Some other interesting findings from the chart:

  • The average (mean) share price at IPO was $7.30, and the average (mean) gross was $59.94. The median share price was $7 and the median gross was $50 million (@LifeSciVc, correct me if I screwed this up). Again, not as bad as I had expected.
  • There are 12 firms trading up by an average of 37 percent. The 11 firms trading down are down by an average of 51 percent. So the ones that have fallen have fallen harder. Does this indicate that buysiders who choose wisely could actually be doing quite well on biotech IPOs?
  • The last five biotechs to price are all trading up. I would wonder if that means they have learned their lesson and set pricing expectations lower to allow them to trade up, but in fact three of them priced above the average. I think that’s a good sign.
Anyone else see anything interesting in this chart? Make of it what you will. . .

You must login or register in order to post a comment.

Report Abusive Comment

Popular Stories

  • Free access to BioWorld coronavirus articles

    BioWorld
    The articles in this collection are from BioWorld’s ongoing coverage of the COVID-19 coronavirus pandemic. They are available for free with registration. Note...
  • Today's news in brief

    BioWorld
    BioWorld briefs for Aug. 19, 2022.
  • Today's news in brief

    BioWorld MedTech
    BioWorld MedTech briefs for Aug. 19, 2022.
  • Pig organ cells

    Whole body cellular function recovery in pigs after death

    Science
    A new system for restoring cell function and tissues in mammals after death could expand the availability of organs for transplantation. The research also opens...
  • TPOXX

    Siga leads monkeypox antiviral research, amid lack of interest from big pharma

    BioWorld
    After declarations from the World Health Organization and the U.S. government that monkeypox is a public health emergency, attention is turning to the pharma...
black cortellis ad

BioWorld Premium

Enjoy extended coverage for the most complete market view with BioWorld, BioWorld MedTech, and BioWorld Asia in a single, easy to access subscription.

Subscribe
  • BioWorld
    • Today's news
    • Analysis and data insight
    • Clinical
    • Data Snapshots
    • Deals and M&A
    • Financings
    • Newco news
    • Opinion
    • Regulatory
    • Science
  • BioWorld MedTech
    • Today's news
    • Clinical
    • Data Snapshots
    • Deals and M&A
    • Financings
    • Newco news
    • Opinion
    • Regulatory
    • Science
  • BioWorld Asia
    • Today's news
    • Analysis and data insight
    • Australia
    • China
    • Clinical
    • Deals and M&A
    • Financings
    • Newco news
    • Regulatory
    • Science
  • BioWorld Science
    • Archives
    • Today's news
    • Search BioWorld Science
    • About
  • More
    • About
    • Archives
    • Article reprints and permissions
    • Contact us
    • Cookie policy
    • Copyright notice
    • Data methodology
    • Podcasts
    • Privacy policy
    • Share your news with BioWorld
    • Staff
    • Terms of use
Follow Us

Copyright ©2022. All Rights Reserved. Design, CMS, Hosting & Web Development :: ePublishing