Four Biomed IPOs Defy Sector Slump With First-Day Pops
Four Biomed IPOs Defy Sector Slump With First-Day Pops
(Bloomberg) -- Four biomedical companies surged in their debuts on Friday after pricing upsized IPOs, despite relative weakness elsewhere in the sector.
Bullish bidding in the quartet continues the sector’s success on U.S. exchanges this year. All four deals were upsized on Thursday despite a 4.6% drop in the Nasdaq Biotech Index before their initial public offerings priced. The biotech benchmark is underperforming on Friday, rising 0.2% or one-fourth of the day’s gain in the Nasdaq Composite Index.
The four companies that debuted on Friday are:
- Vaxcyte Inc. – now trading 45% above Thursday’s IPO price
- Burning Rock Biotech Ltd. – up 47%
- Avidity Biosciences Inc. - up 62%
- Generation Bio Co. - up 21%
Biotech companies that went public this year are trading an average of 75% above their offering prices, according to data compiled by Bloomberg. All other IPOs have returned an average of 16%.
©2020 Bloomberg L.P.