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IPO Update - April 5th, 2011

April 5, 2011

The six biotech IPOs of 2011 have followed 2010's IPO trends; all took significant haircuts getting out the door and most are performing modestly.  The median downward adjustment in the amount raised for 2011's biotech IPOs stands at -31%, the average is at -33%.  These companies have raised a median and mean amount of $49M and $54M, respectively.

Despite the lukewarm IPO reception biotech stocks have faced in the U.S., two more U.S. companies have filed to go public since the close of 2010.  Specialty pharmaceutical company Insys Therapeutics plans to raise $55M, while  regenerative medicine company Advanced BioHealing aims for $200M. (Update: Aldagen decided to pull their $80M IPO plans today)

The real IPO story continues to be China's streak of pharma and biotech listings.  Five Chinese biopharma companies have gone public so far this year, along with a host of CROs and supply companies.  These biopharma companies raised an average of $172M in their debuts on the Shenzhen Stock Exchange (excluding TCM company Tibet Pharmaceuticals, which raised $16.5M in its debut on the NASDAQ in January).  With China exhibiting such an appetite for biotech offerings, it comes as little surprise that Asian companies are joining the IPO queue, with some public Chinese companies even opting for secondary offerings in Hong Kong.

Looking forward in 2011: 33 Biotechs have filed to go public. As the list in Table 3 shows, 19 of these are in the US. Below is the performance of the 26 US IPOs sorted by date of IPO (left to right). Note that Tranzyme Inc (TZYM) was the most recent US IPO, on April 1st, 2011.

Table 1

Table 2

Table 3