Ron Leuty of the San Francisco Business Times has a new feature about how some life science companies are “desperate, and that risks gumming up the IPO pipeline for legitimate filers.” An excerpt:
“17 completed Bay Area life sciences IPOs have raised more than $1.3 billion, but nearly one-third of the filed-for IPOs haven’t happened.
Why? Sometimes you can look no further than the companies themselves to spot the movers and the fakers.
One of the tensions of the Great Recession’s effect on the life sciences industry was the death of companies that couldn’t get funding as Wall Street, venture capital firms and their limited partners exited the industry’s inherent scientific and regulatory risks and the long drug-development timelines.
Yet the general investor who has fueled the return to biotech stocks over the past 18 months may not be so discerning: Those stocks are in the “biotech” bucket, part of a diversified portfolio that either delivers strong returns or not.”