From boom to swoon: Biotech IPOs fade fast in Q2

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.

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