IPO news flow suggests biotech window has opened at last
Another busy IPO week, headlined by the largest offering since 2011, suggests the new offerings window has opened at last, at least in the U.S. Two companies priced their offerings, three set their price ranges and four jumped in line with filings.
The sector has seen several strong quarters of public market financings, including $2.3 billion raised by biotechs via 31 follow-on deals in 1Q13. However, companies and investors have been waiting for an IPO window to materialize (see BioCentury, April 1).
Now, investors who have poured money into already public names during the sector's lengthening bull run are starting to hunt for new names. In addition, investors who missed the run up may be looking for an entry point via IPOs.
There have been 14 IPOs so far in 2013 compared with 11 in 1H12. At least 18 companies are in line (see "IPO Queue," A19).
"There is clearly an IPO window at this time," said Chimerix Inc. President and CEO Kenneth Moch. Chimerix went public last month, raising $117.9 million. The infectious disease company closed last Friday at $21.81, up 56% from its $14 IPO price.
"Some people who had missed the wave last year