Healthcare IPO Market Heats Up This Week
BY SANDER DUNCAN, JANUARY 31, 2011
The US IPO market is heating up as 12 companies are scheduled to price this week. Building on the momentum of 20 IPOs in November and December of 2010, 18 companies have disclosed pricing terms since last Monday. Only eight companies launched offerings in the first five weeks of 2010, but the recently accelerating offering trend will see as many as 19 IPOs in the same time frame this year.
Notably, of the 11 companies offering shares to the public this week, seven are healthcare-related. Along with three drug developers, this group includes two medical device companies backed by private equity firms. Tornier, an extremities implants manufacturer backed by Warburg Pincus, plans to raise $175 million with an offering of 8.75 million shares at a price range of $19 to $21. BioHorizons, a HealthpointCapital portfolio company, plans to raise $90 million by offering 5.6 million shares at a range of $15 to $17.
Early deal flow this year is a positive sign for capital markets and the healthcare industry at-large. In the first two months of 2011 the industry is well ahead of 2010 when only 17 healthcare companies held IPOs.
