Alex Philippidis Senior News Editor Genetic Engineering & Biotechnology News
Which firms raked in the most in proceeds after going public? Find out here.
The first six months of 2014 has seen almost as many biopharma therapeutic, diagnostics, and tools/tech IPOs (52) as took place all of last year (54).
Several reasons have been cited publicly. There’s the revival of the overall market, which has drawn more generalist investors back to the field after staying away for years after the financial meltdown of 2008. Many of those investors have been wowed as much by the innovations of the companies themselves. The FDA has stepped up its pace of reviews and decisions on new drugs, while smaller biotechs have been encouraged to go public through the Jumpstart Our Businesses (JOBS) Act, with its five-year exemption from the Sarbanes-Oxley Act and its process for confidential submission of draft registration statements.
Below is a list of the top 20 IPOs of the first half of 2014, ranked by proceeds—mostly net proceeds, though some companies have opted to report higher gross proceeds, which the List notes with a footnote. Companies are listed by name, amount raised, date of first shares traded, number of shares issued and IPO price, the company’s stock abbreviation, and market in which these shares are traded, followed by footnotes.
So closely were first half 2014 IPOs around the middle of the pack in amounts raised that the 21st biggest IPO, Cerulean Pharma, recorded $60.2 million in net proceeds—less than $1 million below No. 20 Ardelyx’ $60.8 million.
The forecast for the second half IPO market remains cloudy. Of seven biopharmas expected to go public the week of June 23, only one did—Amphastar Pharmaceuticals, and only after it lowered its IPO price to $7 a share from the $10–$12 range it initially sought. The other six biopharmas postponed their IPOs.
One of the six, Ambrx, has since withdrawn its IPO, while Minerva Neurosciences completed its IPO of 5.5 million shares at $6 per share on July 1, leaving it out of this list. At deadline, all of the remaining four (GlobeImmune, KineMed, Microlin Bio, and Syndax Pharmaceuticals) had planned to go public soon after July 1. Yet several other companies filed registration statements for future IPOs late last month (including Auris Medical, Avalanche Biotechnologies, and Viamet Pharmaceuticals), so if the market for biopharma stocks has finally cooled, many companies remain to be convinced.
#20. Ardelyx
Amount: $60.8 million in net proceeds, after deducting underwriting discounts and commissions and estimated offering expenses.
Date: June 19
Shares/Price: 4,928,900 shares at $141
Listing/Market: ARDX on the NASDAQ Global Market
#19. Genocea Biosciences
Amount: Approximately $61.4 million in net proceeds after underwriting discounts and commissions and estimated offering expenses
Date: February 5
Shares/Price: 5.5 million shares at $12
Listing/Market: GNCA on the NASDAQ Global Market
#18. Flexion Therapeutics
Amount: Approximately $67.3 million in aggregate net proceeds, after underwriting discounts and commissions and estimated offering expenses
Date: February 12
Shares/Price: 5.75 million shares at $132
Listing/Market: FLXN on the NASDAQ Global Market
#17. Achaogen
Amount: Approximately $73.9 million in net proceeds after deducting underwriting discounts, commissions, and estimated offering expenses
Date: March 12
Shares/Price: 6.9 million shares at $123
Listing/Market: AKAO on the NASDAQ Global Market
#16. MediWound
Amount: Approximately $80 million4
Date: March 20
Shares/Price: 5.75 million shares at $145
Listing/Market: MDWD on the NASDAQ Global Market
#15. Alder Biopharmaceuticals
Amount: $80.1 million in net proceeds
Date: May 8
Shares/Price: 8,875,396 shares at $106
Listing/Market: ALDR on the NASDAQ Global Market
#14. Concert Pharmaceuticals
Amount: $83.1 million in net proceeds
Date: February 13
Shares/Price: 6,649,690 shares at $147
Listing/Market: CNCE on the NASDAQ Global Market
#13. Auspex Pharmaceuticals
Amount: $87.1 million in net proceeds
Date: February 5
Shares/Price: 8.05 million shares at $128
Listing/Market: ASPX on the NASDAQ Global Market
#12. uniQure
Amount: $85.4 million after commissions but before expenses9
Date: February 5
Shares/Price: 5.4 million shares at $1710
Listing/Market: QURE on the NASDAQ Global Select Market
#11. Dicerna Pharmaceuticals
Amount: Approximately $92.9 million in aggregate net proceeds after deducting underwriting discounts and commissions and estimated offering expenses
Date: January 30
Shares/Price: 6.9 million shares at $1511
Listing/Market: DRNA on the NASDAQ Global Select Market
#10. Revance Therapeutics
Amount: Approximately $98.7 million in net proceeds
Date: February 6
Shares/Price: 6.9 million shares at $1612
Listing/Market: RVNC on the NASDAQ Global Market
#9. Akebia Therapeutics
Amount: Approximately $106.9 million in net proceeds
Date: March 20
Shares/Price: 6.762 million at $1713
Listing/Market: AKBA on the NASDAQ Global Market
#8. Zafgen
Amount: $110.4 million in gross proceeds14
Date: June 19
Shares/Price: 6.9 million shares at $1615
Listing/Market: ZFGN on the NASDAQ Global Market
#7. ZS Pharma
Amount: Approximately $112 million in net proceeds after deducting underwriting discounts, commissions, and other estimated offering expenses
Date: June 18
Shares/Price: 6,836,111 shares at $1816
Listing/Market: ZSPH on the NASDAQ Global Market
#6. Horizon Discovery Group
Amount: $117.3 million (£68.6 million) before expenses17
Date: March 27
Shares/Price: 38,123,006 shares at 180 pence ($3.07)18
Listing/Market: HZD on Alternative Investment Market (AIM), a sub-market of the London Stock Exchange
#5. Ultragenyx Pharmaceutical
Amount: Approximately $126.4 million in net proceeds after deducting underwriting discounts and commissions and estimated offering expenses
Date: January 31
Shares/Price: 6,624,423 shares at $2119
Listing/Market: RARE on the NASDAQ Global Select Market
#4. Versartis
Amount: Approximately $132.2 million in net proceeds
Date: March 21
Shares/Price: 6.9 million shares at $2120
Listing/Market: VSAR on the NASDAQ Global Select Market
#3. Kite Pharma
Amount: $146.625 million, not counting expenses and discounts21
Date: June 20
Shares/Price: 8.625 million shares at $1722
Listing/Market: KITE on the NASDAQ Global Select Market
#2. Phibro Animal Health
Amount: $229.329 million23
Date: April 11
Shares/Price: 14.7 million shares at $1524
Listing/Market: PAHC on the NASDAQ Global Market
#1. Circassia Pharmaceuticals
Amount: “More than” $342 million (£200 million)25
Date: March 13
Shares/Price: 67.4 million shares at 310 pence ($5.28)26
Listing/Market: CIR on Main Market of the London Stock Exchange
Non U.S.-money amounts were all converted to U.S. dollars on June 27.
Notes:
1 Share figure includes 642,900 shares of common stock sold to underwriters after they exercised in full their 30-day option to purchase the shares at the IPO price.
2 Share figure includes 750,000 shares of common stock sold to underwriters after they exercised in full their 30-day option to purchase the shares at the IPO price.
3 Share figure includes 900,000 shares of common stock sold to underwriters after they exercised in full their 30-day option to purchase the shares at the IPO price to cover over-allotments.
4 A May 2 press release that disclosed the amount raised did not say if reflected gross or net proceeds.
5 Share figure includes 750,000 shares of common stock sold to underwriters after they exercised in full their 30-day option to purchase the shares at the IPO price.
6 Share figure includes 875,396 shares of common stock sold to underwriters pursuant to a partial exercise of their 30-day option to purchase up to 1.2 million shares at the IPO price to cover over-allotments, if any.
7 Share figure includes 649,690 shares of common stock sold to underwriters after they exercised in full their 30-day option to purchase the shares at the IPO price before underwriting discounts.
8 Share figure includes 1.05 million shares of common stock sold to underwriters after they exercised in full their 30-day option to purchase the shares at the IPO price before underwriting discounts.
9 Company also reported gross proceeds of $91.8 million, but did not furnish a net proceeds amount.
10 Company said that it additionally sold 810,000 shares of common stock to underwriters after they exercised in full their 30-day option to purchase the shares at the IPO price less underwriting discounts. However, the company had not reported any proceeds for the additional shares in a February 10 press release announcing the closing of the IPO, or its latest Form 20-F, filed April 25 with the U.S. Securities and Exchange Commission.
11 Share figure includes 900,000 shares of common stock sold to underwriters after they exercised in full their 30-day option to purchase the shares at the IPO price before underwriting discounts.
12 Share figure includes 900,000 shares of common stock sold to underwriters after they exercised in full their 30-day option to purchase the shares at the IPO price.
13 Share figure includes 879,647 shares of common stock sold to underwriters after they exercised in full their 30-day option to purchase the shares at the IPO price.
14 At deadline, company had not disclosed net proceeds from the IPO.
15 Share figure includes 900,000 shares of common stock sold to underwriters after they exercised in full their 30-day option to purchase the shares at the IPO price.
16 Share figure includes 891,667 shares of common stock sold to underwriters after they exercised in full their 30-day option to purchase the shares at the IPO price.
17 Includes $68 million (£40 million) raised for the company before expenses, and $48.7 (£28.6 million) sold by exiting shareholders at the IPO price.
18 Includes 22,222,222 million new ordinary shares to be issued by the company, plus 15,900,784 shares sold by the exiting shareholders at the IPO price.
19 Share figure includes 864,054 shares of common stock sold to underwriters after they exercised in full their 30-day option to purchase the shares to cover over-allotments, if any.
20 Share figure includes 900,000 shares of common stock sold to underwriters after they exercised in full their 30-day option to purchase the shares at the IPO price.
21 Company raised $127.5 million, not counting expenses and discounts, from the initial 7.5 million shares sold, according to news reports at the time.
22 Share figure includes 1.125 million shares of common stock sold to underwriters after they exercised in full their 30-day option to purchase the shares at the IPO price, less customary underwriting discounts and commissions.
23 Figure combines $114.229 million in net proceeds reported by the company and £67.6 million ($115.1 million) in total proceeds reported from the IPO and related transactions by 3i Group, the sole limited partner of selling stockholder Mayflower L.P. Phibro said its figure reflected deductions by company of underwriting discounts of approximately $8.438 million and offering expenses payable by us of approximately $2.333 million. As part of the offering, 3i reduced its stake in Phibro from 30% to 7%, with the lower stake valued at approximately £25.1 million ($42.8 million). Also, Phibro repaid an outstanding £14.4 million ($24.5 million) loan from 3i.
24 Total share figure furnished by 3i Group. In its Form 10-Q for the quarter ending March 31, 2014, Phibro said it sold 8,333,333 million of the shares; the additional shares were sold to the IPO underwriters via a 30-day option granted by the company.
25 Amount raised was reported at the time as $333.5 million, but the value in U.S. dollars has risen since then due to fluctuation of exchange rates. Company disclosed that “over £200 million” had been raised, without saying if that reflected gross proceeds (which would have been £208.94 million) or net proceeds.
26 Share figure includes 64.5 million shares sold by Circassia and 2.9 million sold by existing stockholders at IPO price.
