August 11, 2014
(Editor’s Note: This post is an excerpt from an article appearing in Practitioner Insights on WestlawNext)
The month of July saw the most IPO pricings by biopharmaceutical companies since the implementation of the JOBS Act in 2013. In the wake of this spike, however, several companies in the industry have announced plans to withdraw, postpone or significantly lower the value of their IPOs. These postponements could signal a greater slowdown in IPO activity within the biopharmaceutical industry.
The most recent example is Tobira Therapeutics Inc., a biotech developing an immunotherapy treatment for liver disease and HIV, which postponed its IPO on Aug. 7. The company cited current market conditions as the reason for its postponement.
Similarly, Microlin Bio Inc. postponed its IPO on Aug. 6, also due to market conditions. The postponement came after the company revised its IPO terms several times in an effort to attract more interest from investors, including the addition of warrants to purchase additional shares to the offering.
These are not the only biopharmaceutical companies to recently postpone or withdraw their IPO plans. Three companies postponed or withdrew their offerings during that month, including:
- Lantheus Holdings Inc. postponed its IPO on July 31, citing poor market conditions;
- Mapi-Pharma Ltd. postponed its IPO on July 29, after several attempts to revise the terms of its IPO to attract more interest from investors;
- KineMed Inc. officially withdrew its registration statement on July 23, without citing any specific reasons.