1. Scrip
  2. >>Business

IPO Update: Haircuts Needed To Price Biotech Offerings

 
• By Mandy Jackson

The two drug developers that managed to launch initial public offerings in the US during the past two weeks had to accept rough haircuts in order to get investors to buy their newly issued stock.

stock

The two drug developers that managed to launch initial public offerings in the US during the past two weeks had to accept rough haircuts in order to get investors to buy their newly issued stock.

Clearside Biomedical Inc. priced 7.2m shares at $7 each on June 1 versus a prior range of $14 to $16 for 4m shares, while Reata Pharmaceuticals Inc. settled for an offering of 5.5m shares at $11 each on May 25 versus earlier plans for a 4m share IPO at $14 to $16 each. The offerings showed that investors continue to wield their scissors when confronted with IPOs from biotech companies that aren't focused on immuno-oncology or gene editing

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on Scrip for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required
Start Free Trial

Already a subscriber?

More from Business

Strong Showing For Bayer’s Pharma Business In Uncertain Times

 
• By Kevin Grogan

As CEO Anderson backs high prices for innovative drugs in Europe

Stock Watch: Stock Watch: Lilly And Novo Duke Out Q1

 
• By Andy Smith

Novo Nordisk enjoyed a surprise GLP-1 agonist contracting win in the first quarter of 2025. This provided a welcome boost to its stock after it had spent the previous quarter on the back foot against rival Lilly.

Azafaros Banks Over €130m To Advance Nizubaglustat Into Phase III

 
• By Kevin Grogan

The therapy has been developed for GM1 and GM2 gangliosidoses and Niemann-Pick disease type C.

Roche Reveals Another US Manufacturing Site As Tariff Pressures Seem To Ease

 
• By Mandy Jackson

Roche/Genentech unveiled plans for a $700m-plus manufacturing facility for weight loss drugs in North Carolina as President Trump signaled such investments could mean no tariffs for pharma.

More from Scrip

Roche Reveals Another US Manufacturing Site As Tariff Pressures Seem To Ease

 
• By Mandy Jackson

Roche/Genentech unveiled plans for a $700m-plus manufacturing facility for weight loss drugs in North Carolina as President Trump signaled such investments could mean no tariffs for pharma.

Lilly Builds Obesity Momentum With New SURMOUNT Data Besting Novo Nordisk

 
• By Alaric DeArment

The presentation and publication of the Phase IIIb study showing greater efficacy for Zepbound over Wegovy come at a time when competition has been heating up between the two obesity medications.

Trump’s MFN Executive Order More Rhetoric Than Action

 
• By Jessica Merrill

The details of Trump’s latest executive order on drug pricing are vague and the president put more blame on other countries and pharma distributors than drug companies.