Of the four biotech IPOs that were scheduled to price this week, only two priced successfully. These were the first two biotech IPOs in almost a month, both of which had heavy insider buying.
| IPO Pricings Week of May 2nd 2016 | ||||||
| Issuer Business |
Deal Size ($mm) |
Market Cap ($mm) |
Price vs. midpoint |
First day return |
Return at 5/6 |
|
| Intellia Therapeutics (NTLA) |
$108 | $661 | +6% | +23% | +23% | |
| Preclinical biotech developing gene editing therapies using CRISPR/Cas9 technology. |
||||||
| Spring Bank Pharmaceuticals (SBPH) | $11 | $88 | -14% | -8% | -8% | |
| Developing small molecule therapies for hepatitis B and viral diseases. |
||||||
Gene editing remains hot
Intellia Therapeutics - Raised $108 million by offering 6 million shares (upsized from 5 million) at $18, the high end of the range. Intellia is utilizing the same CRISPR/Cas9 technology as Editas Medicine (EDIT; +89% return), but is in earlier preclinical stages. The two are also in a battle over key patents. Insiders took down at least 42% of the deal.
Spring Bank Pharmaceuticals - After postponing its March offering, Spring Bank raised $11 million by offering 920,000 shares at $12, the low end of the range. At its IPO price, it commands a fully diluted market cap of $88 million versus the originally proposed $132 million valuation. Insiders took down at least 55% of the deal.
Oncobiologics (ONS), which is developing biosimilars of blockbusters Humira and Avastin, was expected to price its $60 million deal this week; it has since moved to day-to-day status. Microcap biotech Cancer Prevention Pharmaceuticals (CPP), which is developing treatments for colorectal cancer risk factors, was expected to price its $25 million deal; it has also moved to day-to-day status.
Four deals hop onto the calendar
SiteOne Landscape Supply (SITE), the largest national distributor of landscaping supplies in the US and Canada, set terms to raise $210 million. Optical network equipment maker Acacia Communications (ACIA) set terms to raise $99 million. Biotech Viamet Pharmaceuticals (VMET), a developer of small molecule metalloenzyme inhibitors to treat fungal diseases, set terms to raise $86 million and preclinical PhaseRx (PZRX), a developer of treatments for inherited enzyme deficiencies in the liver, set terms to raise $22 million.
IPO Pipeline Update
NantHealth (NH), provider of cloud-based healthcare solutions, filed to raise $92 million. The week also saw financial updates from: aircraft lessor Intrepid Aviation (INTR), healthcare REIT MedEquities Realty Trust (MRT), pulmonary hypertension biotech Reata Pharmaceuticals (RETA), industrial LBO Atkore International Group (ATKR), medical device maker Tactile Systems (TCMD) and medical claims auditor Cotiviti Holdings (COTV).
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is down 7.0% year-to-date, while the S&P 500 is up 0.6%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Alibaba (BABA), Synchrony Financial (SYF) and Citizens Financial Group (CFG). The Renaissance International IPO Index is down 3.1% year-to-date, compared to -0.4% for ACWX. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include NN Group and Aena S.A.
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