This Day On The Street
Continue to site
ADVERTISEMENT
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

A Chart You Should See: Biotech IPO Class of 2013 Is Lagging

 



The red-hot biotech IPO class of 2013 is cooling off. 

Look at the blue line in the chart above. It represents the performance of all biotech IPOs in 2013. For most of the year, biotech IPOs were en fuego. Since October, not so much. And now, that blue line has crossed below the red line, which represents the  S&P 500. 

The biotech IPO Class of 2013 is now under-performing the broader market. (Thanks Credit Suisse for the chart.)

For all the buzz that newly public biotech companies generated this year, it was always unrealistic to believe shares would go up forever. This is particularly true for the biotech stocks with very early-stage pipelines. 

Like Bluebird (BLUE - Get Report):

BLUE Chart
BLUE data by YCharts

Prosensa (RNA) debuted well but then its lead drug blew up:


RNA Chart
RNA data by YCharts

Enanta Pharma (ENTA - Get Report) has help up well:


ENTA Chart
ENTA data by YCharts

And so has Portola Pharma (PTLA - Get Report):


PTLA Chart
PTLA data by YCharts

The expiraton of lock-up agreements play a significant role in the performance of IPOs, and biotechs are no exception:

Credit Suisse:

So far 11 of the 38 Class of 2013 IPO companies have had their lockup dates expire. The average pre lock-up performance for the 11 companies is +57% (+48%/+30% relative to S&P500/S&P500 Biotech, respectively), while the average post lockup performance is -11% (-15%/-16% relative to S&P500/S&P500 Biotech, respectively.)

-- Reported by Adam Feuerstein in Boston.

Follow Adam Feuerstein on Twitter.

Adam Feuerstein writes regularly for TheStreet. In keeping with company editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.

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
Only $9.95
14-Days Free
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
SYM TRADE IT LAST %CHG
RNA $18.65 0.00%
BLUE $163.21 0.00%
ENTA $43.18 0.00%
PTLA $45.85 0.00%
AAPL $126.44 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs