Healthy discounts

January’s class of follow-ons met investor and banker expectations by posting amuch smaller discount than last January’s crop, but a lack of catalysts to drive interest has made the buyside selective.

Biotechs raised $943.2 million in a total of 15 follow-ons from 14 companies last month. That was well below last January’s total of $1.5 billion in 15 follow-ons, and the record-setting January 2015, which saw 31 deals raising $4.5 billion...