Renaissance Capital has been running the numbers on the Q2 class of biotech IPOs, and they’re not painting a pretty picture. Out of the 12 biotech IPOs completed since April 1, 10 are trading at below issue price. And that’s a much worse record than we saw in Q1.
Kadmon didn’t help. Battered by bad reviews in the lead up to their IPO, the company priced at the bottom of their range and promptly fell 19%. For some reporters in the field, it was a chance to reprise founder Sam Waksal’s role in an old, notorious insider trading case. Others just hated the financials and risk.
The Q2 record may chill plans for more IPOs, though a number of companies have been moving into the queue in any case. Biotech IPOs had a hell of a run, though, outperforming the rest of the field for three straight years, right until the second half of last year.
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