Investors are infatuated lately with preclinical biotech companies going public.
Six of these very young biotechs have managed successful initial public offerings this year, despite not yet securing regulators’ permission to start human clinical trials. By comparison, one preclinical biotech was able to go public last year.
Collectively, the six preclinical biotech companies raised nearly $800 million in their public market debuts; one, Rubius Therapeutics, raised $240 million is already valued at more than $2.1 billion. As of Monday, four of the six stocks were trading higher than their IPO price. The average return for all them: 31 percent.
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More opportunities for leveraged shorting down the line, eh Adam? As a lot, investors will lose money. see Feuerstein-Ratain rule. More Aeterna Zentaris companies here than future Amgens for sure.