Rates of Return in PPM IPOs
This article was originally published in Start Up
Recently, the PPM industry seems to have collapsed under the weight of the perhaps inherently contradictory nature of PPMs: how can a health care maintenance organization contain costs when it is made up of the very individuals who feel obligated to make treatment decisions without regard to expense? Start-Up looks at recent PPM IPOs.
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While START-UP first noted an industry-wide tendency to overestimate the prices IPO investors were willing to pay in early 2005, IPOs have regularly fallen short of the anticipated price ever since, with few exceptions.
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The trend of biopharma IPOs eschewing Nasdaq for European and other exchanges reverses modestly in 2006.