Not that it's that relevant here but a good article from JC questioning the legs in the IPO surge. Always the case when listing private companies that it's the first opportunity for VC's and the seed capital to take some return on their investment and mitigate risk by carving off withheld interest and then the continual option of on market return. Higher the price the bigger return for seeds without the need for stitching a deal.
UPDATED: Is the biotech IPO frenzy headed for a crack-up?
August 9, 2013 | By John Carroll
Over the past month the explosion of upsized, range-breaking biotech IPOs has continued without any signs of a letup. Yesterday, it was Intrexon's ($XON) turn to shake hands with Wall Street, walking away with $160 million and a market value north of $2 billion--most of which is controlled by CEO Randal "RJ" Kirk--after its stock price soared on the debut.
Since the end of the first half, 8 more biotechs have gone public, raising $592 million and bringing the total to $2 billion for 29 companies. For all of last year, there were 11 biotech IPOs--and that was a distinctly improved performance over the drought years of 2008-2011.
New S-1s are still coming, with 11 biotechs in the IPO queue and plenty more likely getting some close scrutiny.
The latest batch of newly public companies includes Agios ($AGIO), which broke through the ceiling on its range despite the fact that it has no clinical data yet on any of its drug candidates. OncoMed ($OMED) and Onconova ($ONTX) also managed the same range-busting feat, though offerings from small outfits like Heat Biologics only managed the low end of the range.
Getting a fresh source of capital and $2 billion to pump into clinical trials is a positive development for biotech. But in just a few short months, the market has moved from a deep chill to tropical heat. We know from past booms that once the frenzy begins, funds start chasing big returns and throw fundamentals out the window. With Intrexon, the biotech IPO boom looks increasingly overheated.
I've updated the biotech IPO list below. As always, let me know if I missed anything. For more analysis on the IPO scene in the first half of 2013, check out our original report. -- John Carroll,
