The market has been unenthusiastic about novel antibiotics, and Entasis Therapeutics proved susceptible on Wednesday. The company fell 28.9% on its IPO, the year's worst first-day return, and the biggest drop for a biotech IPO in 16 years, when DOV Pharmaceutical fell 33.1%.
Entasis priced its IPO below the range at $15, offering additional shares to keep the deal size at $75 million. As expected, existing investors purchased 66% of the offering, leaving a relatively small float of just 1.7 million shares. Low floats can lead to volatile early trading.
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