Ebb & Flow

IPO windows tend to stay open only so long as investors can see some upside from offering prices. Thus neurology company Memory(MEMY) and gastrointestinal company Santarus(SNTS) did their bit to maintain the window by taking significant haircuts on their prices over the past two weeks. Shares of both companies then rose in trading.

MEMY had been hoping to sell its shares at $13-$15 and ended up doing the deal at $7. SNTS's price range was $11-$13 and the company priced at $9. While SNTS took a smaller haircut, it also lowered the number of shares sold to 6 million from 7.1 million.

The good news, however, is that SNTS now sits in the middle of its proposed range and MEMY is on the way to its mid-range. SNTS added $0.96 on the week and closed Thursday at $12.33, putting it up 37% since it raised $54 million in an IPO the prior Wednesday. Banks on the SNTS deal were SG Cowen; UBS; Thomas Weisel Partners; and RBC Capital Markets.

MEMY popped $2.02 (29%) to $9.02 on the week. On Monday, the company raised $35 million in its IPO. Underwriters were UBS; SG Cowen; Banc of America; and Fortis.

"If you can't get a deal done at the price on the cover, you go to the key accounts and ask where they like the price - that's typically where you do the deal," said Jeffrey Barnes, general partner at Oxford Bioscience Partners, which is an investor in MEMY. "It may turn out that the market prices it much higher, but it would be very hard to fill the book

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