Monday, August 7, 2000
While investors in NASDAQ-listed biotech IPOs have made quick
paper gains, European biotech flotations are also providing investors with an
opportunity to make a quick profit.
Of the 11 European IPOs that have priced since May, nine traded
up on their first day and remain up through last Friday (see "European IPO Moves").
While the gains pale slightly in comparison to the internet-like pops of their
U.S.-listed counterparts, some of the post-float moves are substantial, with
companies continuing to rise in the aftermarket. In the U.S., 58 percent of
the IPOs had lost at least a portion of their first day gains over time (see
Ebb & Flow, July 31). In Europe, 54 percent of companies have built on their
first day gains.
Leading the pack is GPC Biotech
(NMarkt:GPC), which has seen its price rise E23.50
(98 percent) to E47.50
since floating in May. The genomics cancer company has a market cap of E803
million ($742 million). In Zurich, Modex (SWX:MDXN) has gained CHF107 (64 percent)
to CHF275 since its June IPO. The tissue regeneration company's market cap now
stands at CHF354 million ($210 million).