Posted tagged ‘investors’

Biotech IPOs Are on the Rise

November 25, 2013

With over 20 years of experience investing in biotechnology, Lindsay Rosenwald, MD, has founded dozens of companies and managed a number of billion-dollar biotech funds. As the co-founder of the asset management firm Opus Point Partners, Lindsay Rosenwald closely monitors developments in the life sciences, pharmaceuticals, and related industries.

For the first time in over a decade, biotech initial public offerings (IPOs) are making a strong showing in 2013. So far this year, about 30 promising biotech companies have gone public, including Chimerix, Enanta Pharmaceuticals, and Tetraphase.

What has stimulated this recent burst of IPO activity among biotechs? Some business leaders cite the 2012 Jumpstart Our Business Startups (JOBS) Act, which has allowed some small businesses to reduce auditing costs and therefore devote more resources to research. The JOBS Act also allows companies a measure of confidentiality, helping them to gauge investor interest with more certitude.

In addition to the legislative environment, recent positive shifts in the biotech market among established firms may be signaling a rise in investor confidence in biotechnology companies. A natural outgrowth of this is an increase in capital available for IPOs.

If these positive trends continue, the biotech sector could return to the investors’ spotlight. More importantly, a rise in the number of successful IPOs could encourage more scientists to open companies and share their medical insights with the world.