Wild week for Blech watchers
The decline in the value of biotechnology shares, and the impact that has had on New York investor David Blech's portfolio, is adding one more negative factor to the gloomy market for initial public offerings.
Blech's firm, D. Blech & Co., has been one of the last remaining outlets for companies wanting to go public. But last week's assault by investors on the companies in Blech's personal portfolio and on the companies he has underwritten, combined with generally falling share prices, will likely prompt increased caution on the part of D. Blech.
The firm and its associates are not commenting and choosing not to refute publicly the spate of rumors that surrounded D. Blech's activities last week. But according to knowledgeable sources, D. Blech will limit the size of its deals to $15 million in response to the market's condition.