January 3, 2007 -- We have all read, including in these pages, that biotech IPOs are dead. Indeed, IPO pricing remains low, keeping returns for insiders to a minimum. The valuations of IPOs make venture capitalist investment in development-stage companies an even more dicey proposition than it was before. But the numbers for biotech IPO investors – at least in 2006 – tell a somewhat different story. The volume of biotech IPOs was up in 2006, from 16 in 2005 to 21 last year – small numbers, but still a 31% increase. More significantly, aftermarket returns were up from an average of 7% to almost 40%. We look at who fared well and at who did not...
