With 4 more biotech IPOs due to wrap up Q2, how is the class of 2019 faring?
With 22 biotech IPOs on the books and four more set to price in the last week of June, investment adviser Renaissance Capital has taken the pulse of the recent rush.
By the IPO experts’ count, 25 out of 32 healthcare offerings this year have been from biotechs — differing slightly from Brad Loncar’s tally — and the overall picture is one of underperformance. While they averaged a first-day return of 9.0%, collectively they have traded down to a 5.9% return. Turning Point $TPTX and Cortexyme $CRTX emerged on top at the half-year mark, rising 135% and 109% respectively.
The flood of biotech IPOs in June has run the gamut. Sure, many are early stage, with Stoke and Atreca still in preclinical development whereas Prevail has an IND pending. Akero has just completed Phase I. But there are also BridgeBio and Adaptive on the calendar, targeting valuations of more than $1.5 billion.
Also expected to join the big leagues, though perhaps not in June, is Genmab — having filed a $500 million pitch and trading in Europe with a market cap well over $10 billion.
The five companies that made their debut on the Street this month reaped $618 million in total as investors continue to rally around most — but not all, as Dermavant’s delay shows — newly coined public biotechs.
Morphic and Karuna are also expected to price in the coming days; the former is developing a family of integrin medicines based on new tech from Harvard’s Tim Springer while the latter refashions a couple of old drugs to tackle some tough CNS diseases.
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