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2 billion-dollar biotechs will IPO this week; here's how the last 5 performed


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One prediction from our 2018 Annual IPO Review is already coming true: Biotech IPOs are getting bigger.

Two biotech IPOs with proposed billion-dollar valuations are slated to price this week. The first, Alector ( ALEC ), plans to raise $176 million at a market cap of $1.4 billion, and begin trading on Thursday. Then Gossamer Bio ( GOSS ) aims to raise $230 million at a $1.0 billion market cap the next day. Both are early-stage, have been well-funded, and target multi-billion dollar markets (Alzheimer's/dementia and asthma, respectively).

In 2018, only five of the year's 58 biotechs (9%) went public at billion-plus valuations, three of which were in the fourth quarter. The table below shows that the year's billion-dollar biotechs performed worse than the rest in first-day trading (+6% vs. +12%), but as of Friday's close, had held up better since then.

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The article 2 billion-dollar biotechs will IPO this week; here's how the last 5 performed originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital's Renaissance IPO ETF (symbol: IPO) , Renaissance International ETF (symbol: IPOS) , or separately managed institutional accounts may have investments in securities of companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: News Headlines , IPOs
Referenced Symbols: ALEC , GOSS



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