The years-long glut of biotech IPOs has flooded the public markets with high-risk life sciences companies, and shorts have taken a particular interest in those newly public drug developers, according to a report, betting the industry's recent boom will see its shadow.
NovoCure has filed for an IPO to raise up to $300 million on the strength of a potential FDA approval for its Optune device in combination with chemotherapy for patients with newly diagnosed glioblastoma.
Private equity players took wound care company Kinetic Concepts private in a $5 billion buyout in 2011. Then these investors rolled in wound care peer Systagenix for $485 million in October 2013. Prior to that, KCI had already beefed itself up with the 2008 acquisition of tissue regeneration player LifeCell for $1.7 billion.
Australia's RNA interference specialist Benitec Biopharma chose a bad week to debut on the Nasdaq. The company raised $14 million by offering 1.5 million American depositary shares on Aug. 18, but its stock was down 13% by Friday, a week which saw the Nasdaq Biotechnology Index fall 4.5%.
South Korea-based Samsung Bioepis has hired lead managers for a U.S. listing next year as the joint venture between Samsung Group and Biogen looks to raise as much as $1 billion to fund development of biosimilars that will compete with some of the world's best-selling drugs, Reuters reports.
Australian smart inhaler player Adherium has raised AU$35 million ($25.8 million) in an IPO that's supported by its big pharma partner AstraZeneca. The biopharma committed to kicking in $3 million of the IPO fundraising, which was reported 2x oversubscribed by investors.
Bayer is gearing up to spin off its plastics unit and become a life-sciences-focused company, and as part of that prep, it's going on an investor roadshow to seek feedback on its plans.
In the world of China healthcare companies, the halt to initial public offerings on China's Shanghai and Shenzhen exchanges has not stopped the action in the capital markets.
China's Universal Medical Financial & Technical Advisory Services priced its IPO at $447 million, FinanceAsia reported, showing further the ability of healthcare-focused companies, including biotechs, to raise cash on the Hong Kong Stock Exchange.
ViewRay has nabbed up to $50 million in debt financing from healthcare investor CRG after canceling a proposed $52 million IPO in April. The cash will go to help commercialize its MRI-guided radiation therapy as well as to refinance existing debt.