It was a 50/50 week for IPO's last week and considering the deal size of the two that didn't list, we think it's still looking good for new issues. The two biotech companies that did price were the first two biotech IPOs in almost a month, both of which had heavy insider buying.
Intellia Therapeutics (NASDAQ: NTLA) started off strong by raising $108 million. The company was able to offer 6 million shares (1 million more than previously anticipated) at $18, the high end of the range. its frist day of trading was a great one, closing up 23%. Intellia is utilizing the same CRISPR/Cas9 technology as Editas Medicine (NASDAQ: EDIT), but is in earlier preclinical stages. The two are also in a battle over key patents, which will most likely end in a sharing of the IP. Insiders supported at least 42% of the deal.
Spring Bank Pharmaceuticals (NASDAQ: SBPH) was successful in its launch but performance of shares on the first day wasn't as strong as NTLA. 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, the company has a market cap of $88 million versus the originally proposed $132 million valuation. Insiders supported at least 55% of the deal.
Oncobiologics (NYSE: 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 (NASDAQ: 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 new IPO's to look at:
SiteOne Landscape Supply (NASDAQ: 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 (NASDAQ: ACIA) set terms to raise $99 million. Biotech Viamet Pharmaceuticals (NASDAQ: VMET), a developer of metal-binding protein therapeutics to treat fungal diseases, set terms to raise $86 million and preclinical PhaseRx (NASDAQ: PZRX), a developer of treatments for inherited enzyme deficiencies in the liver, set terms to raise $22 million.