Washington is not the Only Place Healthcare is News
All agree that small-cap healthcare companies – if they are to survive – need access to capital. Referencing previous financing and structures posts: these events could be a sign of a broader market recovery as I-Banks ramp-up their capacity and capability in restructuring, advisory and underwriting. Large and small investment banks such as: Wells Fargo, Bank of America Merrill Lynch, Centerview Partners, Jefferies & Company, Morgan Joseph, Thomas Weisel Partners and Leerink Swann have hired bankers amid expectations of financing activity.
Pharma’s biotech acquisitions over the past few months have also renewed interest in the sector as patent protection and new drug introductions are declining. Bankers think that M&A will boom … but, I might “slightly” disagree as more partnering, joint-ventures, licensing deals and option agreements will be initiated as – “why buy the cow when you can ‘license’ the milk” thinking pervades Pharma … which minimizes risk.
New healthcare IPO filings are:
• Anthera Pharmaceuticals filed to sell up to $70 M in stock to fund its drug development programs in inflammatory and cardiovascular diseases and lupus,
• Omeros launched its IPO offering 6.82 M shares of its common stock, priced at $10 to $12 per share, which could generate as much as $81.8 M to fund inflammation and disorders of the central nervous system,
• Talecris Biotherapeutics filed to sell 44.7 M shares between $18-20 to fund their discovery, development of critical care treatments for people with life-threatening disorders in a variety of therapeutic areas including immunology, neurology, pulmonology and hemostasis.
Bottom-line: Biotech stocks seem to be recovering … though some “may” wonder if the gains will hold as smaller-cap healthcare companies are able to raise cash to offset short -term sustainability. I also believe that healthcare reform is priced into stocks but … worry about the affects of me-too platforms, dilution and long-term viability. I-Banks always seem to push new issues into the market whenever they feel stocks have rallied but, watch the after-market. Might this renewed financing activity signal a near-term market top?
