Biotech Values

[DewDiligence]

Recent Healthcare IPOs Are Sickly

http://online.wsj.com/article/SB116155870674000336.html

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…health-care-related companies -- those that specialize in developing cutting-edge medical devices, biotechnology and pharmaceutical treatments -- still can't seem to get much [IPO] action. Of the eight such deals that have tried to debut so far this month, only three succeeded: LeMaitre, Trubion Pharmaceuticals Inc., and Ivivi Technologies Inc. Trubion and Ivivi each squeaked out a 1% gain during their first day of trading.

Health-care IPOs haven't been on investors' A-lists for quite a while. Although there have been more of them this year than in any other industry sector, according to Renaissance Capital's IPOhome.com Web site, their average returns have lagged behind most other industries. And while there have been slightly more offerings in the sector this year -- 27 so far, compared with 25 at this point last year, says data tracker Dealogic -- a full two-thirds have been forced to cut their prices in order to get done.
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