Neuer Markt: Launch and hope

European life science companies showed they can still raise equity capital on the Neuer Markt, as Sanochemia Pharmazeutika (NMarkt:SAC) raised E53.75 million ($57.8 million) and MWG Biotech (NMarkt:NWU) raised E40.5 million ($43.6 million) in their respective IPOs (see B15). But the after-market leaves something to be desired.

SAC, an Austrian neurological company, closed the week down E2.5 (12 percent) from its IPO price at E19, and a market cap of E191.7 million ($206 million). According to Philippe Cramer, director of life science research at Close Brothers, "German retail investors, who did not see an immediate premium within hours of the IPO, dumped the stock."...