#17: Braving the IPO Drought
Published by
Scott Jordan
on
Recent article in "The Scientist" highlighted the continued challenges facing biotech companies seeking to raise capital through IPOs. Following the recent financial crisis, investors in the sector are seeking "De-Risked" companies including those with late-stage therapeutics (Verastem being an exception), products on the market with revenues (Fluidigm), and strong management teams (Clovis Oncology).
Of Interest:
In 2008, 19 biotech companies withdrew their IPO registrations
In 2010, 13 biotech companies raised capital via IPOs including one of the most successful IPOs of that year, Ironwood Pharmaceuticals (raised $188 million)
In November of 2011, Clovis Oncology competed the largest biotech IPO of the year ($130 million)
In 2012, Verastem raised $55 million and Cempra Pharmaceuticals secured $48 million