This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Pharma IPOs Are Good Medicine

The only recent bomb so far was last year's Horizon Pharmaceuticals (HZNP). The stock came to market at $9, and closed Friday at $7.20, down 20%. The arthritis drug maker is expected to get some news this month from the FDA regarding its time-release formula for the steroid prednisone.

There are now 15 healthcare deals in the pipeline with two scheduled for the next two weeks. Hyperion Therapeutics which hopes to price in the range of $11-$13. They are developing a drug called Ravicti that reduces the amount of ammonia in the blood. It is under FDA review. Hyperion plans to use the proceeds for completing the clinical development of Ravicti and the commercial launch. They seem confident.

Meantime, Globus Medical is a medical device company that specializes in products that promote spinal healing. Its price range is $16-$18 per share and the company is hoping to go public in the first week of August.

The use of proceeds description in Globus Medical's prospectus is a bit of a red flag. The real purpose behind the offering seems to giving employees a way to sell their stock; otherwise, they have no plans.

The filing states, "We do not have any specific uses of the net proceeds planned, nor have we determined the amounts that we will actually spend on those uses." It goes on to ask investors to just trust management's judgment on how best to spend the money. If they aren't sure about how to use their proceeds, I would think investors might want to wait on that one.

Biotech offerings were once the darlings of the IPO world, but got pushed aside by hip Internet stocks. As a result of their wallflower status, investors are getting some great prices. That makes up somewhat for the risks they take buying drug companies that have yet to make any money or earn FDA approval.

Call it the wellness side effect.

-- Written by Debra Borchardt in New York.

>To contact the writer of this article, click here: Debra Borchardt.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
CLVS $79.05 3.39%
NLNK $44.43 3.13%
SUPN $9.26 3.00%
AAPL $129.09 0.49%
FB $79.75 0.99%


DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs