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Biotech IPO Update for May 18th, 2011

May 18, 2011
There are now eight biotech IPOs for 2011, bringing the total for the recent US IPO window to 28. Post-IPO performance is finally picking up with the median return at +14% for these 28 IPOs.

Advanced BioHealing was scheduled to IPO this week, but Shire (SHGPY) came in with a $750M offer to buy the company. Sagent Pharmaceuticals (SGNT) was the most recent IPO, back in April. Sagent is a specialty pharma company selling injectable products in the therapeutic areas of cardiovascular, anti-infective/antibacterial, antineoplastic agent, and antiemetic.

The median raised vs. filed is still at -30% as seen in the following chart. Only two companies, Sagent and Pacific Biosciences, have been able to raise the amount they originally filed for. However, the second chart below shows the stock performance for the 28 US companies - a lot more green bars can be found than in the past. Aveo (AVEO) and Ventrus (VTUS) are literally off the chart with >100% gains. Bottom line: still a mixed bag for IPOs.

List of the 28 US IPOs: