Categories Health Care, IPO

IPO update: Two healthcare unicorns went public this week

We had earlier reported on why 2018 was the year of healthcare IPOs. It seems the trend is continuing into this year as well. Two healthcare unicorns have already priced their IPOs this year, and both of them happened this week.

San Diego-based biotech firm Gossamer Bio, which focuses on immunology and oncology drugs, priced 17.25 million shares late on Thursday at $16 apiece.

The company, which has three experimental drugs under development, raised $276 million through the initial public offering. The stock started trading on Nasdaq under the symbol GOSS on Friday.

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Bank of America Merrill Lynch, Evercore ISI, Barclays and SVB Leerink were the underwriters of the public listing.

The biotech unicorn, which is headed by former Receptos executive Sheila Gujrathi, will use the raised amount to advance its flagship asthma drug, as well as other investigational therapies.

On Wednesday, South San Francisco-based Alector priced 9.25 million shares at $19 apiece, raising $176 million in the first IPO since the 35-day federal government shutdown. The stock, which started trading on Nasdaq under the ticker ALEC on Thursday, ended the day over 5% in red.

Also read: These 2 tech startups may follow Spotify’s method of direct listing over IPO in 2019

Notably, Alector specializes in brain disorders and approaches Alzheimer’s Disease as an immune system disorder. The company, which is headed by former Genentech scientist Arnon Rosenthal, will use the net proceeds to develop new drugs as well as for the clinical trials of the experimental ones.

Alector had earlier raised funding from Amgen Inc, Abbvie and GV (Google Ventures). Bank of America, Barclays, Cowen Inc, and Morgan Stanley were the underwriters of the IPO.

Also Read:  Owens & Minor Inc (OMI) Q2 2020 Earnings Call Transcript


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