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US IPO Weekly Recap: Biotechs get pushback, but gene editing still soars

Of the four biotech IPOs that were scheduled to price this week, only two priced successfully. These were the first two biotech IPOs in almost a month, both of which had heavy insider buying.

IPO Pricings Week of May 2nd 2016
IssuerBusiness Deal Size($mm) Market Cap($mm) Price vs.midpoint First dayreturn Returnat 5/6
Intellia Therapeutics ( NTLA ) $108 $661 +6% +23% +23%
Preclinical biotech developing gene editing therapies using CRISPR/Cas9 technology.
Spring Bank Pharmaceuticals ( SBPH ) $11 $88 -14% -8% -8%
Developing small molecule therapies for hepatitis B and viral diseases.

Gene editing remains hot

Intellia Therapeutics - Raised $108 million by offering 6 million shares (upsized from 5 million) at $18, the high end of the range. Intellia is utilizing the same CRISPR/Cas9 technology as Editas Medicine (EDIT; +89% return), but is in earlier preclinical stages. The two are also in a battle over key patents. Insiders took down at least 42% of the deal.

Spring Bank Pharmaceuticals - After postponing its March offering, Spring Bank raised $11 million by offering 920,000 shares at $12, the low end of the range. At its IPO price, it commands a fully diluted market cap of $88 million versus the originally proposed $132 million valuation. Insiders took down at least 55% of the deal.

Oncobiologics ( ONS ), which is developing biosimilars of blockbusters Humira and Avastin, was expected to price its $60 million deal this week; it has since moved to day-to-day status. Microcap biotech Cancer Prevention Pharmaceuticals (CPP), which is developing treatments for colorectal cancer risk factors, was expected to price its $25 million deal; it has also moved to day-to-day status.

Four deals hop onto the calendar

SiteOne Landscape Supply (SITE), the largest national distributor of landscaping supplies in the US and Canada, set terms to raise $210 million. Optical network equipment maker Acacia Communications (ACIA) set terms to raise $99 million. Biotech Viamet Pharmaceuticals (VMET), a developer of small molecule metalloenzyme inhibitors to treat fungal diseases, set terms to raise $86 million and preclinical PhaseRx (PZRX), a developer of treatments for inherited enzyme deficiencies in the liver, set terms to raise $22 million.

IPO Pipeline Update

NantHealth (NH), provider of cloud-based healthcare solutions, filed to raise $92 million. The week also saw financial updates from: aircraft lessor Intrepid Aviation (INTR), healthcare REIT MedEquities Realty Trust (MRT), pulmonary hypertension biotech Reata Pharmaceuticals (RETA), industrial LBO Atkore International Group (ATKR), medical device maker Tactile Systems (TCMD) and medical claims auditor Cotiviti Holdings (COTV).

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is down 7.0% year-to-date, while the S&P 500 is up 0.6%. Renaissance Capital's IPO ETF ( IPO ) tracks the index, and top ETF holdings include Alibaba (BABA), Synchrony Financial (SYF) and Citizens Financial Group (CFG). The Renaissance International IPO Index is down 3.1% year-to-date, compared to -0.4% for ACWX. Renaissance Capital's International IPO ETF ( IPOS ) tracks the index, and top ETF holdings include NN Group and Aena S.A.

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The article US IPO Weekly Recap: Biotechs get pushback, but gene editing still soars 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, the Renaissance IPO ETF (symbol: IPO) or the Global IPO Fund (symbol: IPOSX) , 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.


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

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