Monday, August 6, 2012
Aftermarket performance is better for biotech IPOs this year
than it was in 2011. Although the basics of what it takes to get an IPO done
haven't changed - deals routinely continue to require a discount to the filing
range and substantial VC participation - Sofinnova
Ventures' James Healy is heartened by the deal flow he is seeing.
In aggregate, the IPO class of
2012 has gained 3%, and the class of 2011 has lost 3% since going public. The
differential is more stark if the change in value for each IPO is adjusted for
the change in value of the BioCentury 100 index since each company went public -
a calculation designed to factor out the general effect of the overall biotech
market. Based on that calculation, the class of 2012 is up 5% while the class
of 2011 is down 32%.