Three Biotech IPOs Started Trading. Here’s How the Stocks Did.

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Amylix Pharmaceuticals raised $190 million, Sincor Pharma about $194 million and Vigil Neuroscience raised $98 million.

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Trio of Biotech Companies – Amylyx Pharmaceuticals,

Sincor Pharma,
and Vigil Neuroscience-listed shares of Friday, 2022’s first initial public offering. By noon, two out of three companies had fallen below their offer prices, indicating that the IPO market is yet to recover from the 2021 slump.

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All three are the first to trade since the new issues were paused in December. After 11 months of excitement in 2021, where the IPO delivered its best year ever, inflation and Omicron issues slowed the offering in December. Only a dozen companies went public that month using traditional IPOs, down from 34 in November and 39 in October.

Biotechs are less sensitive to overall market trends, said Matt Kennedy, senior IPO strategist at Renaissance Capital. Friday’s trio’s stellar start is a continuation of the disappointing IPO returns of 2021, he added. Of the 397 companies going public in 2021 using traditional IPOs, about 31%, or 121, are trading above their offer price, he said. This means 69% are below their IPO price.

The biotech class of 2021 is performing worse. Kennedy said only 15 of the 94 companies listed last year were trading above their issue price. Some investors are still “hoping for a pop,” but Kennedy said there isn’t much demand for new deals right now. “It only goes so long before early investors stop showing up, and then we may see a pause in activity,” he said.

That could come next week, when two high-profile deals are due to open. TPG, a large private-equity firm, and justworks, an HR software company, both are set to do business. Kennedy said that if companies cut their price range, it would indicate that the IPO market is challenging even for profitable companies. “You don’t come away a year like in 2021 and back to normal in a matter of weeks. we need to see [recent IPOs] Returns tend to improve before we can expect normal deal flow,” he said.

Sincor (ticker: CINC), which is developing treatments to treat high blood pressure and other cardio-renal diseases, opened for the first time on Friday. The shares closed at $21 and then fell. As of noon, the stock was trading 18 cents above its offer price at $16.18.

Sincor gave the biggest deal on Friday, raising about $194 million, The company increased the size of its IPO to 12.1 million shares valued at $16. It filed to offer 11 million shares priced from $15 to $17. Morgan Stanley, Jefferies and Evercore are the underwriters on the ISI deal.

Meanwhile, Amylyx (AMLX) shares closed at $21 and fell. The stock recently changed hands at $18.93, down 7 cents from its issue price.

Amylyx focuses on therapies to treat ALS and other neurodegenerative diseases. Amylyx, which also increased the size of its deal, raised $190 million After selling 10 million shares at a price of $19 each. It had planned to offer $8.75 million from $18 to $20. Goldman Sachs, SVB Leerink, Evercore ISI, and HC Wainwright are the underwriters on the deal.

Vigil (VIGL), which aims to provide treatments for neurodegenerative diseases, was the last of the trio to start the business. company $98 million collected After selling 7 million shares at $14, down the $15-to-$17 price range.

Vigil opened at $12 below its IPO price. The stock recently changed hands at $12.05, down nearly 14%. Morgan Stanley, Jefferies, Stifel and Guggenheim Securities are the underwriters on the deal.

Write to Louisa Beltran at [email protected]

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