US Biopharma IPOs: Market's Rally Passes Them By

Continuing the trend from 2010, biopharma initial public offerings in 2011 are running into stubborn resistance from public investors, a frustrating development as markets otherwise soar to pre-recession levels. More often than not, drug companies are squeezing through the IPO window, which reopened in late 2009, by selling more shares at lower prices. The discounts mean companies raise less cash, and they strain beleaguered venture investors who must hold shares longer to reach an attractive exit price.