Biotech financing

US biotechnology IPOs by year
Capital raised
Number of deals
5
75
4
60
3
2
45
30
Number of deals
1
15
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
0
Source: EY, Capital IQ and VentureSource.
US biotechnology IPO pricing by quarter, 2013–15
Within or above range
Below range
Q4
14%
2013 2014 2015
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
40%
40%
58%
58%
67%
67%
73%
71%
73%
78%
Q1
33%
Source: EY, Capital IQ and VentureSource.
The ability of companies and bankers to gauge interest in IPOs —
as measured by whether the IPOs priced within their expected
ranges — held relatively steady throughout the first three
quarters of 2015. But during the fourth quarter, only a third of
the 17 US and European biotechs IPO’d within their intended
ranges, off from nearly three-quarters in the third quarter.
This trend was even more pronounced in the US, where only one
biotech priced above or within its intended range during
the quarter.
Overall, only 44% of all newly public biotechs had positive
share returns in 2015. The average post-IPO performance at
December 31, 2015, was 3.8% (compared with an average
40% gain at the same date for companies that went public
in 2013; for companies that debuted in 2014, that gain was
an astounding average 87%). Dermatology-focused Aclaris
Therapeutics led 2015’s gainers, up 145% on the year since
its October 2015 IPO. Notably both NantKwest (-31%) and
Adaptimmune (-29%) were off significantly from their IPO prices
by the end of 2015.
Beyond borders 2016 — Biotech financing
17