Monday, October 16, 2000
Wall Street watchers have been saying for months that the biotech
IPO window won't close in the U.S. until investors stop making money in the
aftermarket. With the double-whammy of global events and profit-taking, this
notion is now being put to the test.
The U.S. IPO group - which consists of 55 deals that jumped
through the IPO window since Oct. 1, 1999 - had traded up 89 percent through
the end of the third quarter. But it's taken only two weeks to cut that number
in half, with the gain now down to 43 percent. In the first two weeks of the
quarter, all but one - Tanox Inc. (TNOX, Houston, Texas) - have traded down.