The US IPO market snapped back in the 1Q17, but quarterly biotech activity fell to its lowest level since the 4Q12. Just three of the 25 deals came from biotechs in the 1Q17, compared to seven of the eight in the 1Q16. Recent IPO Tocagen (TOCA) broke the drought with an $85 million deal on April 12. More deals should follow: five biotechs have filed for IPOs since the start of the quarter, almost half of all new filings. They become eligible to launch in the next couple weeks, beginning with Akcea Therapeutics (AKCA).
The three 2017 biotech IPOs had mixed trading, with Jounce Therapeutics (JNCE) and AnaptysBio (ANAB) up 42% and 67%, respectively. ObsEva (OBSV) dropped 22% on its first day and now trades off 46% from its offer. The 2016 class is trading an average of 10% above offer, or up 25% for the IPOs that raised $50 million or more.
