Allen Wagner September 23, 2013
Much has been made of the recent pickup in IPO market activity. With stock markets and valuations at all-time highs, and many analysts predicting continued strength at least through the end of the year, there’s no doubt that venture capital-backed companies and their investors are benefiting from this year’s IPO boom. But perhaps no industry has ridden this boom quite as far as the pharmaceuticals & biotechnology sector, which has been the strongest industry for public offerings this year.
The industry’s 26 venture-backed IPOs comprise half of the 52 companies that were taken public through Sept. 19 this year. And 2013 is already the best year for VC-backed biotech IPOs, far surpassing 2004’s 17 offerings and 2000’s 21 offerings, PitchBook’sventure capital data show. Comparatively, VC firms have taken just 13 software companies public this year.
And even though popular software and social media companies, such as Tableau Software, Marketo and Twitter (which may IPO by the end of 2013), may steal the limelight in filing and pricing their IPOs, biotech companies in 2013 have, by and large, seen their stocks perform quite well following their initial public offerings, despite a relatively lower profile.
Here are the five largest VC-backed biotech IPOs through Aug. 30, 2013:
5. Chimerix (NASDAQ:CMRX)
April 10, 2013
$102.48 million offering at $341.7 million valuation
Aug. 30 price: $15.76 (12.6% increase over IPO)
VC Backers: Alta Partners, Asset Management Ventures, Canaan Partners, Frazier Healthcare, Morningside Venture Group, New Leaf Venture Partners, Pappas Ventures and Sanderling Ventures
4. Agios Pharmaceuticals (NASDAQ:AGIO)
July 23, 2013
$106 million offering at $542.3 million valuation
Aug. 30 price: $23.58 (31% increase over IPO)
VC Backers: ARCH Venture Partners, Celgene, Flagship Ventures and Third Rock Ventures
3. Portola Pharmaceuticals (NASDAQ:PTLA)
May 21, 2013
$122.13 million offering at $491.3 million valuation
Aug. 30 price: $22.86 (57.7% increase over IPO)
VC Backers: Advanced Technology Ventures, Alta Partners, Brookside Capital, Frazier Healthcare, Goldman Sachs, Ontario Teachers’ Pension Plan and numerous others
2. PTC Therapeutics (NASDAQ:PTCT)
June 19, 2013
$125.58 million offering at $355.1 million valuation
Aug. 30 price: $17.94 (19.6% increase over IPO)
VC Backers: Adage Capital Management, Brookside Capital, Credit Suisse, Novartis Venture Funds, Vulcan Capital and numerous others
1. Intrexon (NYSE:XON)
Aug. 8, 2013
$160 million offering at $1.52 billion valuation
Aug. 30 price: $21.73 (35.8% increase over IPO)
VC Backers: Carilion Clinic, Colt Ventures, NewVa Capital Partners, Sandbox Industries, The Virginia Tech Foundation and Third Security
For more on venture capital-backed IPOs and other liquidity topics, download the PitchBook 2H 2013 Venture Capital Liquidity Report.