Biosimilar play Oncobiologics falls after IPO

Oncobiologics Inc. (NASDAQ:ONSIU) dropped $1.20 (20%) to $4.80 in its first day of trading Friday after it raised a combined $40 million in an IPO and concurrent private placement. The company raised $35 million through the sale of 5.8 million units at $6 in the offering, and $5 million through the sale of 833,332 units in the placement to existing shareholder Sabby Healthcare Master Fund.

Each unit comprises an Oncobiologics share, half of a series A warrant and half of a series B warrant. Each whole series A warrant can be exercised for a share at $6.60, and each whole series B warrant for a share at $8.50. ...