1. Biotech Markets in 2009
While the perspectives might have looked grim early in the year, throughout the year, we’ve seen numerous signs of recovery and a newfound health in the markets. The Biotech IPO market reopened with Telacris (TLCR) the 4th largest deal of the year, and followed by Cumberland (CPIX) and Nuokang (NKBP) showing signs of an increasingly robust healthcare market, specifically for biotechnology. Since September 15th, the backlog started filling up with a dozen companies filing for IPOs.
2. Expectations for Biotech in 2010
How will Biotech perform in 2010? With a Q409 setting us up for a positive 2010, the return of the IPO market means new exits for private equity and venture capital investors, who will in turn be able to reinvest in new companies. A dozen Biotech IPOs could be expected in the first 4months of this year. The international outlook is also very positive with Israeli, European, and Chinese companies filing for NASDAQ IPOs. Indicators of success to look for are the strength of the overall market, and the pricing of the issues to come market.
3. Helping Smaller Biotech Companies Stay Listed
It is hard to get listed, and sometimes just as hard to stay listed. Just as we began to understand the magnitude of the financial crisis in September 2008, NASDAQ asked the SEC that companies shouldn’t be immediately delisted, if they began trading under $1. This request was shortly thereafter granted, helping keep many companies on the market. Additionally, NASDAQ has been developing the services it provides to issuers (e.g. risk management, corporate governance, investor relations, intelligence on stock trading) in an effort to drive new efficiencies. Finally, we’ve seen some success with Sarbanes-Oxley, further reducing the cost of trading for Biotechnology companies listed on the NASDAQ.
This interview was conducted at the NASDAQ Marketsite, on January 5th, 2010, in New York City.
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