A disciplined crowd
Roadblocks to some biotech IPOs show investors aren't yet breaking discipline
Even though this year's class of newly public biotechs is showing a stellar performance in the aftermarket, some IPO candidates have been forced to limp out or shelve their plans altogether. This suggests investors continue to evaluate new stories selectively despite the allure of the most robust IPO market in more than five years.
As of last week, 25 of the 33 companies to price an IPO this year were trading at or above their offer price. The group is up a median of 26%. Indeed, 20 companies have outperformed an already strong biotech market, as measured against the performance of the BioCentury 100 index (see "2013 IPO Performance," A3).
Three of the top four performers are Japanese biotechs, which have been riding a wave of local interest in the sector. But newly listed companies in the U.S. and Europe also have been faring well.
Six companies have raised more than $100 million this year, including synthetic biology company Intrexon Corp.'s $160 million IPO last week.
Such an explosion of big deals hasn't been seen since 2007, when 10 companies priced IPOs of $100 million-plus.
The average IPO this year has raised $66.3 million, which bests the 2007 average of $47.2 million during the last IPO window, which ran from 2003-07.
"It had been a tough decade or so for biotech companies wanting to go