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In our 2018 year-end
review of life sciences and tech IPOs, we noted that life
sciences offerings totaled 67 raising an average of $133 million
while there were 45 technology deals raising an average of more
than $380 million, not including Spotify, whose unique direct
listing process did not raise capital. We were curious to see if
those trends would continue in 2019, so we took a look at the
numbers year to date.
2019 Deal Size
Through the end of May 2019, there were 27 life sciences
offerings that raised $2.3 billion. On average, life sciences IPOs
grossed $86 million. The largest deal so far was Gossamer Bio's
initial public offering that garnered $276 million. The smallest
offering was $5 million raised by Guardion Health Services.
On the technology side, there have been 11 IPOs through May
raising an impressive $14 billion. However, that total includes the
outsized offerings from Uber and Lyft which took in $8.1 billion
and $2.34 billion respectively, lifting the average offering to
$1.3 billion. Omitting the two rideshare companies, the value of
the average tech offering drops to $416.7 million. After Uber and
Lyft, the next largest tech offering was Pinterest at $1.4
billion.
Listing
Five of the technology IPOs were listed on NASDAQ while six
listed on the New York Stock Exchange. However, every life sciences
IPO listed on the NASDAQ. The fact that life sciences companies are
selecting the NASDAQ has driven the NYSE to restructure its fee schedule to
make it more attractive to pre-revenue companies, which to date
includes most life sciences companies.
Pricing
Among technology offerings, three of the 11 deals priced above
range while the rest priced within range. The three that priced
above range were Zoom, Pinterest and PagerDuty, a cloud computing
company.
On the life sciences side, three companies, Kaleido Biosciences,
Applied Therapeutics and IDEAYA Biosciences, priced below range.
ShockWave Medical, a medical device company, was the only life
sciences offering to price above range.
Venture-Backed
All but five of the life sciences companies that debuted since
the first of the year were venture-backed. Of these five that
weren't, two companies were based outside of the United States:
GENFIT S.A. (France) and Brainsway Ltd. (Israel). The other three
that were not venture backed include Guardion Health Sciences, Hoth
Therapeutics and Stealth BioTherapeutics.
Among technology offerings there were three companies without
venture backing. One, Jiayin Group, is based in China. The other
two, Parsons Corporation and SciPlay Corporation, are based in the
U.S.
Location
Five non-U.S. life sciences companies debuted so far this
year:
Anchiano Therapeutics Ltd., Israel
Bicycle Therapeutics, United Kingdom
Brainsway Ltd., Israel
GENFIT S.A., France
Milestone Pharmaceuticals, Canada
Among the technology offerings there were three non-U.S.
companies:
Jiayin Group, China
So-Young International, China
Tufin Software Technologies, Israel
Summary
With several life sciences companies reportedly in the IPO
pipeline, we expect the window for life sciences companies to
remain open in the third quarter, although valuations will likely
remain modest. While tech offerings won't disappear, concerns
over the aftermarket performance of former tech unicorns may slow
the pace there.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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27 Jan 2020, Conference, California, United States
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One of the most visible and highly-regarded securities and corporate law conferences in the country, the Securities Regulation Institute reaches prominent attorneys from both firm and in-house practices. From boardroom updates to issues impacting pre-public companies, the Institute focuses on practical advice for all attorneys advising corporate clients on the ever-changing world of securities and business law. During this three-day event, attendees learn from regulators who write the new regulations, judges who interpret the law to resolve complex disputes, and prominent practitioners who guide their clients through the maze of new legislation, regulations, and jurisprudence.
Fenwick partner Dawn Belt will be speaking on a panel titled “Capital Markets: Private Company Financing” on January 27 at 3:15pm.
Legaltech is the largest and most important legal technology event of the year. Legaltech® provides an in-depth look at what the technological world has in store for you and your practice AND offers an expansive exhibit floor with the most extensive gathering of innovative products designed to meet your current and future technology needs.
Robert Brownstone, chair of Fenwick's Electronic Information Management practice will be speaking during multiple sessions on February 6.
Legaltech is the largest and most important legal technology event of the year. Legaltech® provides an in-depth look at what the technological world has in store for you and your practice AND offers an expansive exhibit floor with the most extensive gathering of innovative products designed to meet your current and future technology needs.
Robert Brownstone, chair of Fenwick's Electronic Information Management practice will be speaking during multiple sessions on February 6.
Understanding CCPA & U.S. State Privacy Regimes (10:00am - 11:00am):
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Life Sciences IP (Video) 
