The week’s five health sector IPOs have produced lackluster returns; together they are down 1% on average from their IPO prices. Amedica (AMDA), which creates improved spine, hip and joint replacements, dropped 6% today after pricing at the largest discount of the year (48% below the midpoint). Treating the pain of bad bones could prove to be more profitable than replacing them, as Flexion Therapeutics (FLXN), an injectable therapeutics company, leads the health care pack with a 13% gain.
Installed Building Products (IBP) has been the week's overall best performer so far, finishing up 16% today. The company's IPO marks the third housing-related IPO of the year after those of Continental Building Products (CBPX) and The New Home Company (NWHM), both of which priced at a discount only to then achieve double-digit returns. On average, the three companies priced 25% below their proposed midpoints, but are now trading 18% on average above their IPO prices.
| IPO pricings (week of February 10, 2014) | ||||
| Company (Ticker) | Business | Deal Size ($mm) | IPO Price vs. Midpoint | Return as of 2/13 |
| Installed Building Products (IBP) | Insulation installer | $82 | -27% | 16% |
| Flexion Therapeutics (FLXN) | Osteoarthritis pain therapy | $65 | 0% | 13% |
| Talmer Bancorp (TLMR) | WL Ross-backed regional bank | $202 | -4% | 8% |
| Concert Pharmaceuticals (CNCE) | Deuterium enhanced treatments | $84 | 8% | 1% |
| NephroGenex (NRX) | Diabetic nephropathy treatments | $37 | -8% | -1% |
| Amedica (AMDA) | Silicon nitride medical devices | $20 | -48% | -6% |
| Eagle Pharmaceuticals (EGRX) | Injectable forms of generic drugs | $50 | -15% | -12% |
