Biotech IPOs a Tough Sell
The market conditions did, however, hit planned biotech IPOs.
Predix Pharmaceuticals, which was looking to sell 5 million shares at $10$12, withdrew its IPO even though it is well under way with enrollment for a pivotal Phase III trial of PRX-00023 in general anxiety disorder.
Predix also expects to initiate a Phase Ib proof-of-concept study for PRX-08066 in pulmonary arterial hypertension later this year and a Phase II study of PRX-03140 in Alzheimer's disease in the first half of 2006.
SkinMedica, developer of products to treat dermatologic conditions and diseases, also withdrew its planned initial public offering of common stock due to market conditions. The company planned to sell 5.25 million shares for $11 13 per share.
Accentia Biopharmaceuticals, got out at the end of October, raising $19.2M through the sale of 2.4 million shares at $8. The price was at the low end of the company's $810 range. At month end Accentia closed down $1 at $7.
The six recent IPO graduates since August are considerably underwater. The combined group showed a 21.2% average decrease in share price. Given the current climate we can expect that the 14 companies on the IPO runway will remain in a holding pattern until conditions improve.
However, excluding these recent six companies, looking at the performance at the end of the third quarter of the biotech companies that completed IPOs since the "opening" of the window in 2003, the group is now collectively up 23% overall, even though over half are still trading well below their issue price.