Biotech Private Placements...at Premiums
This article was originally published in Start Up
Executive Summary
Contrary to assumptions, public biotech companies can actually sell their equity privately at premiums to their 3-month average trading price. As for illiquidity, the bane of the biotech investor: it may actually help some companies increase their offering prices.
You may also be interested in...
The Drug Delivery Valuation Dilemma
In comparing the increase or decrease in a company's valuation pre and post deal signing, we discovered that drug delivery companies seem to have hit a kind of valuation wall.
Premium Investments from Pharma Boost Biotech Returns
Start-Up decided to see how bioceh licensers fared in receiving premium equity investments from their pharmaceutical counterparts four-months post deal signing.
Rx Market Caps–the Flip Side: From Public-to-Private Investment
This month, we compared valuations for those biotech companies which had both gone public in '95 or '96 and had, in 1998, completed a round of private financing. As the amounts of private money raised got larger, so too did market cap valuations. One major reason: the larger the valuation, the more investors are willing to invest.