share offering at $17, above its proposed $14-$16 range. Investors
liked the company's prospects and in the first day of trading after its
offering the company's share value jumped almost 50%.
-- On the last day of the month Nanosphere, which markets a platform for
molecular diagnostic testing, priced 7 million shares offering at the
low end of the $14-$16 range.
Two companies joined the IPO runway in October: molecular diagnostics company XDx. engaged in the development of gene expression-based tests to monitor transplant rejection and autoimmune diseases, and Canadian-based Akela Pharma, which is focused on therapeutics for treatment of cancer pain.
"The good news is that the recent biotech IPO graduates are not floundering once they get out of the gate as has been the case for other new public biotech companies over the past few years," commented Burrill. "Companies such as WuXi PharmaTech, whose stock has almost doubled since its IPO debut and Sirtris Pharmaceuticals (up 56%) are providing investors with renewed confidence about new biotech issues. We certainly see that our prediction of 30 biotech IPOs completed in 2007 will come to pass...and it could even be more given the prevailing mood of the markets toward biotech."
Biotech Industry's Market Cap
The biotech industry's market cap rose 3.6% in October to close at $499 billion.
Index 12/29/06 3/30/07 6/29/07 9/28/07 10/31/07 Month Year
Select 303.96 317.03 319.5 348.75 357.14 2.41% 17.50%
Biotech 424.56 419.97 409.56 450.85 478.59 6.15% 12.73%
|SOURCE Burrill & Company|
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